Erin Energy Corporation - Energy Announces Off-take And Pre Payment AgreementRelease Date: 26/05/2015 14:00:00 Code(s): ERN
Erin Energy Corporation
(Formerly CAMAC Energy Inc)
(Incorporated and registered in Delaware, United States of America)
Share code on the NYSE MKT: ERN
Share code on the JSE: ERN
(?Erin Energy? or ?the Company?)
Erin Energy Announces Offtake and Prepayment Agreement with
Prepayment facility to provide up to $150 million
HOUSTON May 26, 2015 ? Erin Energy Corporation (?Erin Energy? or the ?Company?) (NYSE
MKT:ERN) (JSE:ERN) announced today it has agreed to heads of terms on a commercial
agreement with an embedded prepayment element with Glencore Energy UK Ltd (?Glencore?),
a subsidiary of Glencore PLC.
The offtake contract would allow Glencore to undertake the lifting of Oyo crude from the FPSO
Armada Perdana for a minimum term of two years. The embedded prepayment element, which
is subject to completion of legal documentation and certain conditions precedent, would provide
proceeds in two tranches beginning with the completion of the Company?s Oyo-7 well. The initial
tranche would be available in two equal drawdowns totalling up to $50 million, and would
depend on Erin Energy?s ability to meet certain production targets. The second tranche would
be an inventory revolving facility of up to $100 million.
Kase Lawal, Chairman and CEO of Erin Energy commented: ?We are pleased to be working
with Glencore as our commercial partner to further our development work offshore Nigeria. This
prepayment facility would provide us with additional working capital and is a strong
endorsement of our offshore Nigeria assets.?
About Erin Energy
Erin Energy Corporation is an independent oil and gas exploration and production company
focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses
across 4 countries covering an area of 43,000 square kilometers (10 million acres), including
current production and other exploration projects offshore Nigeria, as well as exploration
licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. Erin Energy is
headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock
Exchanges under the ticker symbol ERN.
This news release contains ?forward-looking statements? within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical fact, concerning activities, events or
developments that the Company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Although the Company believes the expectations reflected in
these forward-looking statements are reasonable, they involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
The Company?s actual results could differ materially from those anticipated or implied in these
forward-looking statements due to a variety of factors, including the completion of the
transactions identified in this release, and risks and other risk factors discussed in the
Company?s periodic reports filed with the Securities and Exchange Commission. All forward-
looking statements are expressly qualified in their entirety by this cautionary statement. You
should not place undue reliance on forward-looking statements, which speak only as of their
respective dates. The Company undertakes no duty to update these forward-looking
Source: Erin Energy Corporation
Chris du Toit, +27 11 593 7301
Lionel McBee, +1 713 797 2960
26 May 2015
Sasfin Capital (a division of Sasfin Bank Limited)
Date: 26/05/2015 02:00:00 Supplied by www.sharenet.co.za
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