Araca Energy ASA (OTCNO:ARACA) signed a sale and purchase agreement to acquire 27.5% stake in Timan Oil & Gas PLC from Levant Energy Limited in stock on November 20, 2014. Under the terms, Araca will acquire in exchange for the issue of new ordinary shares of Araca representing some 90.7% of the enlarged issued share capital of Araca. Levant is also in the process of agreeing with Timan the terms of an agreement whereby Levant will have the right to subscribe $35 million (NOK 236.57 million) into Timan for additional new ordinary shares of Timan. Araca will also acquire these additional Timan shares from Levant in exchange for the issue of further new ordinary shares of Araca which once such shares are acquired in full would then together with Araca shares already held by Levant represent some 96.5% of the then enlarged issued share capital of Araca and in turn, Araca would own some 63.4% of the issued share capital of Timan. Alternatively, Levant will inject the $35 million (NOK 236.57 million) investment into Araca to enable Araca to make the subscription and in the event that the subscription agreement is not concluded, Levant will subscribe $35 million (NOK 236.57 million) directly into Araca on the same terms within 12 months.

Araca will acquire approximately 120 million shares of Timan Oil & Gas in exchange of issuance of its approximately 1.4 billion shares. The price for acquisition is approximately NOK 820 million. The transaction is subject to approval of shareholders of Araca, all regulatory and other approvals to permit the consideration shares to be available for trading on the OTC system with effect from registration and the Araca's auditor approval. The meeting of shareholders of Araca will be held on December 5, 2014. As on March 19, 2015, Araca Energy ASA signed a further agreement for the acquisition from Levant Energy Limited of 27.5% of the issued share capital of Timan Oil & Gas. The new agreement which is on the same commercial terms but with deferred settlement terms, replaces the agreement which was approved by shareholders at an Extraordinary General Meeting on December 22, 2014.

Araca Energy ASA (OTCNO:ARACA) completed the acquisition of 27.5% stake in Timan Oil & Gas PLC from Levant Energy Limited on May 26, 2015.