CABINDA On November 19th, 2012 Kilimanjaro Capita

CABINDA

On November 19th, 2012 Kilimanjaro Capital signed an Oil Assignment Agreement with the Republic of Cabinda to obtain a 49% interest in Cabinda’s prolific offshore blocks, including blocks 0 and 14, as well as the ultra deepwater block. The Assignment Agreement grants future rights to the Republic of Cabinda's disputed offshore claims including an ultra deepwater block not previously explored and right of first refusal on the remaining assets. On February 4th, 2013 Kilimanjaro Capital Ltd. signed an Oil Assignment Agreement with the Republic of Cabinda to obtain a 49% interest in Cabinda’s Northeast Block. On March 10, 2013 Kilimanjaro Capital Ltd. signed an Oil and Mineral Assignment Agreement with the Republic of to obtain a 100% interest in Cabinda’s South, Central and North Blocks

Cabinda was independent prior to becoming a Protectorate of Portugal in 1885 originally known as the Portuguese Congo. The Organization of African Unity recognized Cabinda as the 39th state to be decolonized in Africa. In 1975 the Republic of Cabinda was declared however Portugal awarded the territory to Angola touching off a civil war that has never been resolved.

The Republic of Cabinda (Kabinda) is the de facto government of Cabinda and controls a portion of the country; the remainder being under Angolan military occupation. The current premier is Dr, Joel Batila and the President is Professor Aphonse Massanga. Currently, the African Union Banjul Commission has taken jurisdiction over the issue of Cabinda’s disputed onshore resources and the matter is pending resolution.

OIL

Experts predict that Cabinda’s recoverable onshore hydrocarbons exceed 2 billion barrels. Limited technical data exists on the Cabinda region, aside from some test drilling in the Southern Block due to the security situation; therefore little is known about the full extent of the resource. There is, however, extensive data on limited areas of the asset, which alone deem the asset extremely attractive.

Kilimanjaro’s Northeast block is located next to the Cabinda North Block which has an area of 2,400 sq km, and it is close to the Loufika discovery in Congo, made by French oil group Maurel & Prom SA in 2006. The Loufika-1 exploration well, situated 35 km south-east of the M'Boundi field, encountered, at a depth of 551 meters, a 100 meter thick sandstone reservoir of which the upper 50 meters are oil-bearing. It also borders the Kouakouala field where in 2005, Heritage Oil (Canada) announced that its first commercial well in the Kouakouala field, Well KKL 401, tested at an initial flow rate of 1,600 bbl/d. Kouakouala, which began production in May 2000, has an average output of 1,500 bbl/d at the four wells currently in operation. However, output on the field is expected to increase following the completion of a water injection program.

Kilimanjaro’s Cabinda Northeast block has effectively been under the control of FLEC for almost four decades. This block has never been explored but is in a geographically favourable area. In addition many experts have termed Cabinda to be the African Kuwait.

Kilimanjaro Capital Ltd. has an interest in the concession known as Block 0, which is located off the shore of the three Cabinda blocks, the North Block, the Central Block, and the South Block. Kilimanjaro’s Block 0 concession is operated by Chevron. The block is divided into Areas A and B. Together they contain 21 fields whose total production in 2010 was 365,000 barrels of liquids per day (116,000 net).

Kilimanjaro’s Block 14, a deepwater concession, is also operated by. West of Block 0, Block 14 averaged 187,000 barrels of liquids per day (29,000 net) in 2011 from the Benguela Belize–Lobito Tomboco, Kuito and Tombua-Landana fields. Since 1995 Block 14 has undergone an aggressive exploration program that has resulted in 11 discoveries.

The Southern Block had a test well drilled named The Massambala-1 oil field which has a total reserve of 170 million barrels of oil, which was discovered by the Australian exploration company ROC Oil which subsequently exited the region.

The Central Block is located onshore the Congo Basin adjacent to the prolific offshore Block - 0. The aerial size of the block is 1425 sq.km. The previous exploration effort in this region was in the early 60’s. The block has extensive Presalt half-grabens overlain by thick salt (mid Aptian) up to 700 meters.

The post-salt section is predominantly mid-Cretaceous (Late Aptian, Albian to Late Cretaceous). Tertiary is either absent or thin. The lack of Tertiary sediments is attributable to the major Miocene uplift. Thick delta clastic sediments in Albian to Cenomanian are recognized from onshore to offshore. This interval has a well defined reservoir section. The late Aptian is carbonate/clastic sediment section deposited in restricted marine conditions (Inhuca/Mavuma). Presalt reservoirs in lacustrine carbonates (Toca - Barremian) and fluvio¬alluvial sands (Lucula - Neocomian to Barremian) are to be found in the rift half-grabens. In addition, lacustrine turbidities (Vovo - Barremian) will be other reservoir target. The earlier efforts have shown the presence of oil pools near the basement in cherty limestone (Nacanga). The source rock interval exclusively comes from Late Neocomian to Barremian lacustrine sediments in multiple organic facies.

The Northern Block is an area of 2,400 sq km, and it is close to the Loufika discovery in Congo, made by French oil group Maurel & Prom SA in 2006. The Cabinda North Block is located adjacent to the offshore block 0 operated by Chevron, which produces 400,000 bld.

MINERALS

The full extent and value of the mineral rights in these blocks are unknown as the region remains largely unexplored due to civil unrest. However Cabinda is known as a historic gold producer and considerable resources of uranium-rich sedimentary phosphates have been identified near Pointe Noire, Congo, the deposits straddle the border with Cabinda. About 90% of the gold produced in Portuguese West Africa before 1975 originated from the Maiombe region of Cabinda Province mainly from small-scale alluvial sources with grades about 1g/m3, and related to greenstone belts. In 2009 Radio Nacionale de Angola announced a large deposit of gold had been (re)discovered at an unspecified place in Cabinda. Deposits of diamonds, phosphates, cobalt, and manganese are also thought to exist in exploitable quantities.

AFRICAN UNION

Control of resource patrimony in all of the Cabinda onshore blocks are involved in the litigation initiated by Republic of Cabinda against Angola at the African Union, African Commission for Human Peoples Rights (Banjul Commission) filed in 2006. (FLEC/ANGOLA ACHPR Case No. 328/06). In 2012 the African Union took jurisdiction over the matter and a decision on the merits will be made after further deliberations. This was the first time the African Union has accepted jurisdiction in a case involving an unrecognized state.