Highlights:

• Calima’s portfolio holding in the Comoros has been acquired by Discover Exploration Limited (majority owned by Carlyle International Energy Partners).
• As part of the transaction, Tullow has agreed to farm-in to a 35% interest in the Comoros PSC

Calima Energy Limited owns an 8.5% equity interest in Bahari Holding Company Limited which, holds a 40% interest in a Production Sharing Contract covering Blocks 35,36 and 37 offshore the Union of the Comoros in the Indian Ocean. Bahari is in a joint venture with UK based Discover Exploration Limited (“Discover”) who owns the remaining 60%.

The shareholders of Bahari Holding Company have agreed to sell their 40% interest in Production Sharing Contract covering Blocks 35,36 and 37 to Discover in exchange for 5% of the enlarged share capital of Discover. Discover is a private equity backed E&P company financed by Carlyle International Energy Partners, a $2.5 billion fund associated with the Carlyle Group. Discovery holds a diverse and substantial portfolio of quality hydrocarbon acreage around the world.

Simultaneously Tullow Oil has farmed into a 35% interest in the Comoros PSC Blocks 35,36 and 37. Tullow Oil has interests in over 80 exploration and production licences across 16 countries. Tullow will assume Operatorship, and will carry Discover for a 3D seismic survey and the first exploration well. Both transactions are subject to governmental consent.

Alan Stein, Calima’s Managing Director commented:
“The consolidation of our Comoros interests into the Carlyle backed Discover is a positive step forwards towards converting a portfolio seed capital investment into a shareholding in a well-financed company with excellent prospects of a well receive, substantial IPO in the near to medium term. Calima retains its financial interest in the Comoros PSC’s which will now be led by Tullow, one of the most successful African exploration company’s in recent years while also achieving some risk diversification into the Dutch and German sectors of the North Sea. Discover is well placed to supply growing gas markets in Europe and the combination of near term cash flow in a mature well developed market and blue sky exploration upside where some costs are being carried by a proven and successful deepwater operator should be an appealing combination for investors.