Africa Oil announced that it has received Ethiopian government approval for Marathon Oil, through its wholly-owned subsidiary Marathon Ethiopia Limited B.V., will acquire a 50% interest in the Rift Basin Area. Under the terms of the Marathon Oil farmout agreement, Marathon Oil will acquire a 50% interest in the Rift Basin Area in Ethiopia. Africa Oil will maintain operatorship of the block, but Marathon Oil has the right to assume operatorship if a commercial discovery is made. In consideration for the assignment of this interest, Marathon Oil will pay Africa Oil an entry payment of $3M in respect of past costs, and has agreed to fund $15M of Africa Oil's working interest share of joint venture expenditures in the Rift Basin Area. Africa Oil and Marathon Oil are pleased to complete the final tranche of the farmout transaction originally announced in July 2012. Completion of this transaction is anticipated in March 2014. Following completion, Africa Oil and Marathon Oil will each hold a 50% working interest in the Rift Basin Area.
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