Thursday, January 31, 2013

Agriterra Assigns 20% South Omo Block to Marathon Ethiopia for $28 Million

LONDON--Agriterra Ltd. (>> Agriterra Ltd), a pan African agricultural company, said Thursday it has completed the assignment of its 20% interest in the South Omo Block to Marathon Ethiopia Ltd. BV, a wholly-owned subsidiary of Marathon Oil Corporation (>> Marathon Oil Corporation), for $28 million, plus closing adjustments.
-In addition, $12 million has been lodged with the Government of Ethiopia, on account, pending finalization of any tax payable by Agriterra related to this transaction; tax will be calculated at 30% of the net gain realized after attributable past costs incurred by Agriterra in the development of the Block.
-A further $10 million (subject to applicable tax) will be payable to Agriterra on Marathon Oil's participation in a commercial discovery in the Block.
-Shares at 0945 GMT up 2.79% at 4 pence valuing the company at 36.08 million pounds.