Another milestone was reached on Wednesday when Dr. Kase Lukman Lawal, a Nigerian-born U.S. oil mogul, and Chairman of CAMAC, bought controlling shares in a New York Stock Exchange (NYSE) listed oil company, Pacific Asia Petroleum (PAP).
According to Empowered Newswire, CAMAC bought over 62 per cent shares in PAP, and accordingly changed PAP's name into CAMAC Energy Inc same day at an impressive formal signing ceremony witnessed at CAMAC's head office in Houston, Texas by top American and Nigerian government officials, including the Secretary to the Government of the Federation, Yayale Ahmed.
Speaking during the signing ceremony, Lawal stated that "our first meeting with Pacific Asia was four years ago and we talked about collaboration. We wanted to diversify, from West Africa to China, where PAP has substantial oil holdings."
He added that CAMAC was attracted to PAP because of that diversity, "and they knew our focus was Africa," he added.
Praising the President of PAP, who will continue as President of the new CAMAC Energy, Frank Ingriselli, Lawal said he had been formerly Texaco president before leading other senior Texaco Management officials to start PAP in 2005.
According to Lawal, the current management team at PAP provided strong leadership at Texaco and "gave the shareholders real value," adding that in the new CAMAC Energy Inc, the new management is also going 'to earn the respect' of the shareholders and the public.
In his remarks, Ingriselli expressed similar sentiments, assuring that the new company would "grow shareholder value." According to him, "we are looking forward to the future, we will work hard to make this a profitable venture."
Both officials of CAMAC and PAP noted at the signing ceremony that with the take-over and merger last week between CAMAC, a Nigerian-owned U.S. based oil and gas exploration firm, and New York Stock Exchange listed Pacific Asia Petroleum, the potential to raise greater capital to finance oil and gas operations, including the Oyo Oilfield, has increased tremendously.
A joint statement issued on the day of the formal signing between CAMAC and Pacific Asia, quoted Pacific Asia Petroleum President and CEO, Frank Ingriselli, stating: "Today's closing caps a many months-long process and hard work by all of the parties involved in the transaction."
"We are now prepared to capitalise on the opportunities presented by this acquisition. We expect that the addition of the Oyo Oilfield asset, combined with our existing China assets and the wealth of experience from the new board members and CAMAC, will further enhance our capacity to achieve the Company's strategy to aggressively grow shareholder value with high-return and early cash flow assets."
Lawal added, "We are very excited about the possibilities our new relationship presents. We are very pleased to be a part of the next phase of the development of CAMAC Energy Inc. on the NYSE Amex platform. I look forward to working with the management and the Board to continue creating value for all our shareholders."
Frank Ingriselli, who is continuing as CAMAC Energy Inc president, added that the overwhelming approval from the shareholders for the transaction, is "a manifestation of their confidence in the Company's future.
We are very excited to close this acquisition ... so that the value we anticipate to be generated for our shareholders from this acquisition and our continuing operations on our China assets can grow shareholder value."
An earlier statement from Pacific Asia on Wednesday just before the formal signing ceremony and change of name disclosed that the company shareholders already voted to approve the company's take-over of the Oyo Oilfield of CAMAC's Nigeria's affiliate Allied Energy, a vital aspect of the deal by CAMAC to take over the company.
CAMAC had earlier in November bought controlling shares, over 62% in Pacific Asia, giving it the inroad to the take over and change of name this week.
With CAMAC's controlling majority of the Pacific Asia, and the name change to CAMAC Energy Inc, CAMAC, the company's new trading name on the New York Stock Exchange is the first Nigerian originated company to be listed on the New York Stock Exchange, and the third in Africa, coming after Ashante from Ghana and South African Telecom, two previously listed African firms on the NYSE.
However CAMAC also became the first African energy firm and first African-American energy firm to be listed on the NYSE
According to the statement issued in New York by Pacific Asia Petroleum, "more than 99% of the shareholders voted at the meeting approved all of the recommendations made with respect to this acquisition, including the issuance of shares to CAMAC which will constitute 62.74% of the outstanding shares of the Company, and the change of the Company's name to "CAMAC Energy Inc."
Before CAMAC bought over controlling shares in Pacific Asia, it already had substantial oil investments in China, being a leading global oil firm.
Now, the new firm will now own the Oyo Oilfield, which commenced production in December 2009. Dr. Kase Lawal said while Ingriselli will continue as President, the Chief Operating Officer and Chief Financial Officer of the new firm operating Oyo Oilfield will come from Nigeria.
CAMAC owns 60% of the interest in the Oyo Oilfield, with the other 40% owned by the field's operator, Nigerian Agip Exploration Ltd., a subsidiary of Italy's ENI SpA. In 2008, CAMAC earned revenues of $2.43 billion.
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