Asa Resources Regulatory News (ASA)

28 Jun 2006 07:01

Mwana Africa PLC28 June 2006 MWANA ANNOUNCES ENTRY INTO THE OIL AND GAS SECTOR THROUGH A JOINT VENTURE WITH ENERGY EQUITY RESOURCES 28 June 2006 Mwana Africa plc ("Mwana"), the pan-African resource company, is pleased toannounce that it has entered into a joint venture agreement with Energy EquityResources Limited ("EER"), a privately owned oil and gas group withinternational exploration and production assets. Under the agreement Mwana andEER intend to jointly develop African oil and gas exploration and productionassets, and have agreed the terms of a memorandum of understanding concerningthe manner in which these developments will be undertaken. The joint venture is currently pursuing minority interests in five assets. Ofthese, discussions around two Angolan assets - one production and one advancedstage exploration - have recently progressed into detailed negotiation,following in each case the signing of a memorandum of understanding between thejoint venture and the vendors. These developments mark an important first step in Mwana's entry into theAfrican oil and gas sector and potentially broaden the geographic spread ofMwana's business to include Angola in addition to Mwana's existing activities inDRC, Ghana and Zimbabwe. Energy Equity Resources has exploration and production interests worldwide witha particular focus on the West African region including Nigeria, Angola, Gabon,Mauritania, Sudan, Sao Tome and Principe, Equatorial Guinea and Libya. Commenting on the announcement, Kalaa Mpinga, Chief Executive Officer of MwanaAfrica, said: "We encounter significant opportunities in the African oil and gas sector andtherefore are pleased to be entering this market with such high quality partnersas Energy Equity Resources. Together we believe we have the right technical andmanagement skills to create substantial value for shareholders, and this onceagain underlines the interest of potential partners in working with Mwana." "This move is consistent with our strategy of exploiting opportunities acrossdifferent countries and resources, and also of being the preferred vehicle forAfrican entrepreneurs. This move both adds significant breadth to our portfolioand enhances our capabilities as we develop into a major resource group on theAfrican continent" Enquiries: Oliver Baring, Executive Chairman / Kalaa Mpinga, CEO Tel. +44 207 654 5588Mwana Africa plc Tom Randell or Maria Suleymanova Tel. +44 207 653 6620Merlin About Mwana Mwana Africa is a pan-African resource company and the first African owned andmanaged resources business quoted in London. Mwana Africa was formed in October2005 through a reverse takeover by African Gold plc, the AIM quoted African goldexplorer and miner, of a privately held mining company, Mwana Africa Holdings,with operations in Ghana, the Democratic Republic of the Congo and Zimbabwe. Mwana Africa Holdings was established in 2003 by Kalaa Mpinga and completedthree major mining acquisitions: (i) the Bindura nickel mine in 2003, (ii) theAnmercosa base metal and gold prospects in the Katanga copper belt in 2004 and(iii) the Freda Rebecca gold mine in 2005. The shareholder group which fundedthese acquisitions included Kalaa Mpinga, David Fish and Tim Wadeson from SouthAfrica and several prominent members of the business communities in Angola,Kenya, Zambia and Zimbabwe. African Gold was incorporated in 1987 and began by focusing on the developmentof gold resources in Zimbabwe. By the late 1990s, the company had opened threesmall mines in Zimbabwe. By the end of 2002, its business activities in Zimbabwehad largely ceased and African Gold began searching for opportunities elsewherein Africa. In 2003 and 2004, African Gold raised funds and attracted investorsincluding John Anderson, Oliver Baring, Richard Hambro and Hank Slack andsecured the rights over four new gold properties in Ghana. The formation of Mwana Africa group brought together a senior management teamhighly experienced in the mining industry in Africa. About Energy Equity Resources EER is an international oil and gas company whose core interests includeexploration and production opportunities worldwide, but with a current focus onthe African and Middle East region, including Nigeria, Angola, Gabon,Mauritania, Sudan, Sao Tome and Principe, Equatorial Guinea and Libya. EER waspart of the winning consortia both for Block 1, including Chevron and ExxonMobil, and Block 3, including Anadarko, in the Joint Development Zone, Nigeria /Sao Tome and Principe. EER's key success factors include proven management team,strategic partnership network to assist access, identification and applicationof leading edge technologies, commitment to indigenous development and localvalue creation. These advantages are focused on quality opportunities inestablished oil and gas provinces. EER was established in August 2003 in Norwaywith principal operating offices in Guildford, United Kingdom. This information is provided by RNS The company news service from the London Stock Exchange