Artumas option deal

Canada’s Artumas Group may have overcome some of its recent cashflow problems by securing an option agreement with Maurel & Prom and Cove Energy giving them an opportunity to buy into its assets. The agreement gives the purchasers the option to buy a 54.6% participating interest in Artumas’ Tanzanian gas assets, a 34% stake in its onshore Mozambique assets and all of its 8.5% interest in offshore Mozambique. The option has to be exercised by 18 September. If the deal goes through, Artumas will be carried on the cost of 600km2 of 3D seismic in Tanzania and has an option to be carried on two appraisal wells in Tanzania in exchange for giving Cove and M&P another 5% per well. Cove’s shares are quoted on London’s Alternative Investment Market.