Subject to shareholder approval, the purchase price is to be $US4.5 million and 40 million CityView shares (worth about $A10 million). Definitive agreements are being prepared to complete the transaction, CityView said yesterday.
CityView's recently-commissioned feasibility study has concluded the work program should entail carrying out 2D seismic acquisition and processing, and drilling one extended reach well from nearby small city of Koo to the two discovery wells.
The well will be tested at two locations and completion with shut-off capability will be incorporated.
Once the seismic has been processed, CityView plans to evaluate other undrilled prospects.
CityView also aims to build a 100MW modular power plant at Koo and a transmission line to connect the plant to the grid of the nearby city Douala.
Conclusion of the Matanda agreements will trigger negotiations for an adjoining permit in the Niger Delta, also in Cameroon territory that contains an oil field.