PanOcean acquires 100% of PAE PanAfrican Energy

PanOcean Energy Corp. Ltd. agreed to buy the minority interests in PAE PanAfrican Energy Corp. Ltd. from investors AIG African Infrastructure Fund LLC and RMB Resources (Cayman) Ltd. for $30.75 million in cash and stock.

April 15, 2003

By OGJ editors

HOUSTON, Apr. 15 -- PanOcean Energy Corp. Ltd. agreed to buy the minority interests in PAE PanAfrican Energy Corp. Ltd. from investors AIG African Infrastructure Fund LLC and RMB Resources (Cayman) Ltd. for $30.75 million in cash and stock.

An oil company operating in Gabon and Tanzania, PAE PanAfrican Energy's 2002 production averaged 4,980 b/d and its first quarter 2003 production averaged 9,700 b/d (OGJ Online, Jan. 20, 2003). PanOcean Energy, based in St. Helier, Jersey, Channel Islands, UK, will own 100% of PAE PanAfrican Energy.

The acquisition, expected to close in May, involves a cash payment of $17.5 million, the issuance of 500,000 PanOcean Class B shares, and $11.5 million in subordinated notes.