|By Marketwired .||
|March 27, 2014 07:00 AM EDT||
BELIZE CITY, BELIZE -- (Marketwired) -- 03/27/14 -- The directors and management of Kilimanjaro Capital (GXG: KCAP)(PINKSHEETS: KIMJF) ("Kilimanjaro" or "the Company") are pleased to provide an update on the Company's interest in Cabinda where Kilimanjaro Capital currently has nearly a 100% concessionaire interest in the country's future onshore oil production obtained from the Front for the Liberation of the State of Cabinda (FLEC). Experts predict that Cabinda's recoverable onshore hydrocarbons exceed 2 billion barrels.
Future control of the Cabinda onshore blocks has involved litigation initiated by FLEC 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 full jurisdiction over the matter and received arguments from each side. This was the first time the African Union has accepted jurisdiction in a case involving an unrecognized state.
According to high ranking FLEC sources, the African Commission for Human Peoples Rights has finally reached a decision on the merits. The decision is now awaiting the Assembly of Heads of State and Government of the African Union to ratify it within the next 90 days. The AU Assembly of the Heads of State and Government consists of the 54 heads of state and government of the member countries.
The Cabinda onshore blocks abutt the offshore Chevron and Total operations which are considered among the most productive properties in Africa. Due to the situation with FLEC little exploration has taken place onshore since the beginning of the 1975 Cabinda conflict. African Union involvement is viewed as a positive indicator that FLEC may soon resolve its dispute with Angola and that large scale oil exploration and production will commence with FLEC and Kilimanjaro's participation.
Kilimanjaro CEO Zulfikar Rashid is optimistic the final decision will be favorable to Cabinda and Kilimanjaro: "Dismissals are not sent to the African heads of state for ratification; something huge is brewing here after seven years of legal proceedings." Rashid also predicts that majors already long in the area like Chevron's Cabinda Gulf Oil Company (CABGOC) will be quick to snap up operating agreements: "Chevron and FLEC have had a working relationship in the past; the reason these onshore blocks have been untapped is because of the civil unrest."
Rashid's outlook for Kilimanjaro is likewise bullish: "This AU onshore decision could be bigger than even Cabinda's offshore blocks 0 and 14 which produce hundreds of thousands of barrels a day."
Kilimanjaro also has obtained the disputed rights to the three Cabinda offshore blocks.