WHL Energy Limited has signed a Share Sale Agreement with the shareholders of SEYCO Energy Pty Ltd (SEYCO) to acquire 100 percent of the shares in SEYCO, an entity that is in the process of acquiring the rights to a large exploration holding on the southern continental shelf off-shore Seychelles.

Highlights • WHL Energy signs Agreement to acquire SEYCO Energy, delivering up to a 100 percent interest in 35 exploration blocks, offshore the Republic of Seychelles.(1) • Historical exploration expenditure in excess of US$7 million. • Potential company changing opportunity to explore for hydrocarbons in a high graded frontier area within the emerging East Africa region. • Significant analysis already completed by the Vendor with a large 2D seismic acquisition campaign set to begin in November 2010. • Follow up assessment of previously identified, possible multi-billion barrel oil leads.

The holding includes 35 exploration blocks in a prospective area in shallow waters covering an area of approximately 20,700km2 (>5 million acres) located about 100 km off the Seychelles coastline.

Newly appointed WHL Chief Executive Officer David Rowbottam said: 'Following a strategic review, the Company identified this asset as a significant opportunity to drive its future growth.'

'Acquiring SEYCO, and its associated Seychelles exploration interests, will provide a new strategic focus for WHL Energy,' Mr Rowbottam said.

On completion of the transaction, WHL Energy plans to move quickly to further assess the hydrocarbon prospectivity of the Seychelles blocks. Leading international geophysical company Fugro is programmed to begin acquisition of 7000 km of 2D seismic over SEYCO's blocks in November 2010. The contracted seismic vessel has been mobilised and is currently enroute to the Seychelles. The total estimated cost of this program is US$7 million.

The planned survey will focus on 20 mapped structures identified from 2D seismic previously acquired over the nominated blocks.

Tags: WHL Energy Limited