Sonangol acquires Cobalt's Angola discoveries for US$1.75 billion
On 24th August 2015, Sonangol and Cobalt signed an agreement for Sonangol to acquire Cobalt's 40% participating interest in blocks 21 and 20 offshore Angola for US$1.75 billion. The blocks contains five fields with commercial reserves estimated at 785 mil bbl. The deal is effective January 1, 2015 and our base case valuation of the deal is US$958 million (discounted at 10% from Jan 2015). Our valuation excludes technical reserves on the blocks of 4.7 tcf of gas and 650 mil bbl of liquids.