Emperor Oil Ltd. has entered into a Memorandum of Understanding (MOU) with State Petroleum Overseas Inc., ('State') to acquire 85% of their 50 % working interest in a late stage oil development project located in Block 7 in Sudan to develop the three discovered oil fields. 'SUDAPET' (Sudan's state oil company) has the remaining 50% interest in the project and is the Company's joint partner.

Emperor will provide, for and to the satisfaction of the Government of Sudan and State, on or before October 8, 2012, evidence confirming Emperor's ability to pay its share of the initial Project costs; such share of the Project costs being up to US$15 million which includes a US$9.5 million bank guarantee to be furnished Seven (7) days prior to the signing of the EPSA. The remaining US$5.5 million will be used to pay EPSA signing bonuses and any other required fees and other expenses including the work program until December 31, 2012.

Tags: Emperor Oil Ltd.