News

January 23, 2009

Artumas Group Begins New Search For Farm-In Partners For Its Promising Acreage In East Africa

The crisis in the banking industry continues to disrupt business in the E&P sector. Given that the business model of many companies relies on the appetite of bankers to play along with the gamble that expensive drilling in far-flung lands will unearth hidden treasures, it is little surprise that the global credit crunch and subsequent plunge in the price of oil has seen a flight of capital from the sector. The financial meltdown has impacted the operations of a wide range of companies, from Oilexco North Sea, which earlier this year went into administration, to cash-strapped Black Rock Oil & Gas, which has now been renamed Woburn Energy after it was bought out by investment vehicle Cetus Investment.

Canada’s Artumas Group, which is focused on the hydrocarbon potential of East Africa, has also been hit. The Olso-listed company had hoped to farm down its equity in the Mnazi Bay concession in Tanzania and the onshore Rovuma Block in Mozambique before the end of 2008.  But the turbulent market conditions of late 2008 meant the primary bidder for the equity was unable to reach agreement with Artumas, which has now terminated the negotiations. With the assistance of Tristone Capital,...