Nigerian Agip Exploration (NAE), a subsidiary of Eni SpA, in its partnership with CAMAC Energy Inc.,

a United States’ based energy company engaged in the exploration, development and production of oil and gas in Nigerian Oil Mining Licenses (OMLs) 120 and 121, has stated that it has signed an agreement to divest its 40 per cent working interest to Allied Energy Plc, an affiliate of the company’s largest shareholder.

The transaction is subject to customary conditions for closing and is expected to conclude during the first quarter of 2012, as Allied plans to expedite the development of Oyo Field by drilling two additional production wells commencing in 2012.

The two wells are expected to significantly increase oil production over current levels as Allied intends to accelerate exploration activities in the OMLs to fully exploit potential outside of Oyo Field, independently estimated at up to two billion barrels of unrisked prospective oil resour-ces.

As part of its West African regional growth strategy, CAMAC also  reached an agreement on commercial terms with two national oil companies to acquire three offshore exploration licenses covering three blocks.

Per the agreed terms, CAMAC Energy will be the operator, with majority working interests in each of the license blocks. The license blocks are located in the highly prospective West African Transform Margin, home to several recent major discoveries in Ghana (Jubilee, Odum) and Sierra Leone (Venus, Mercury) and a core focus area for the company’s expansion efforts.

All terms and final award of the license blocks are subject to the final government approvals and signing of production sharing contracts, which are expected in the first quarter of 2012.

The company has also noted that it has signed a definitive agreement with the principal shareholders of Avana Petroleum Limited; a private Isle of Man company (“Avana”), The agreement will result in the acquisition of 100 per cent of the issued share capital of Avana.

The total purchase price is $15 million, payable in shares of the company’s common stock in three tranches, with the first tranche of $10 million payable upon completion and the second and third tranches of $2.5 million payable at six-month intervals following completion.

As part of the transaction, Chief Executive Officer of Avana Petroleum, Sam Malin, said the company would join CAMAC Energy as a business development consultant focused on securing additional assets in prospective East African basins.