Motor Oil participates in gas exploration in Tanzania

MV Upstream Tanzania Limited (“MV Upstream” – registered in Cyprus) is a wholly owned subsidiary of Motor Oil Vegas Upstream Limited (registered in Cyprus). MOTOR OIL (HELLAS) S.A. holds 65% of the share capital of Motor Oil Vegas Upstream Limited with the remainder 35% belonging to Vegas Oil and Gas Limited. For the participation of MOTOR OIL (HELLAS) S.A. in the share capital of Motor Oil Vegas Upstream Ltd. the Annual General Meeting of June 8, 2016 granted special permission pursuant to article 23a of the CL 2190 / 1920.
Otto Energy (Tanzania) Pty Limited (” Otto” – registered in Australia) is a subsidiary of Otto Energy Limited, a company the shares of which are listed on the Australian Securities Exchange (ASX).
Kilosa-Kilombero is an onshore block of 17,625 square kilometers for oil & gas exploration. The companies which participate as Joint Venture partners to this Exploration License are: Otto (currently 50%), Swala Oil and Gas (Tanzania) plc, (a company listed on the Dar es Salaam Exchange - 25%), Tata Petrodyne (a member of the Indian Tata Group - 25%). Swala Oil and Gas (Tanzania) plc is the operator.
In consideration for the above MV Upstream will pay to Otto USD 2.3 million as past costs contribution and will carry Otto in respect of well costs up to the amount of USD 2 million. In addition, if there is a discovery necessitating drilling an appraisal well MV Upstream will carry Otto in respect of well costs up to USD 1 million.
The transaction is subject to the approval of Tanzanian authorities and joint venture partners (SWALA Energy and Tata Petrodyne) approvals.
In case of further developments in respect of the above, MOTOR OIL (HELLAS) S.A. will inform the investment community with subsequent announcements.