Agri Energy, Statesman Resources to Work Together in Sudan

Agri Energy Limited has signed an agreement with Canada listed Statesman Resources Limited to explore for oil and gas opportunities in Africa. As per the agreement, Agri will acquire a 49.9% stake in Statesman Africa Limited, wholly owned subsidiary of the Canadian firm. Statesman Resources Limited BVI, has recently been awarded a 75% Working Interest in the 100,000 km2 Block 14 in north west Sudan.

The minimum expenditure over the three year term of the Exploration Production Sharing Agreement for Block 14 is $12 million. Additionally, Agri has advanced Statesman $800,000 which will provide interim funding and form part of Agri's overall funding obligations upon completion of the transaction.

“The Board considers the growing international interest in African oil and gas activity as a key growth area for the Company and by entering the Agreement with Statesman, provides it with access to significant opportunities in the region,” the statement said.