CAMAC Energy Inc finalizes two offshore contracts

CAMAC Energy Inc. (NYSE Amex CAK ), a US publicly traded Energy Company that primarily engaged and focused on strategic development of oil projects by singular and multilateral operations. The market capitalization of the formerly Pacific Asia Petroleum Inc is between (426.84 - 632.1) M. CAMAC Energy Inc announced that on December 10, 2010, CAMAC Energy finalized and executed a definitive Purchase and Continuation Agreement (the “Purchase Agreement”) with Allied Energy Plc and certain of its affiliates (“Allied”) to acquire all of Allied’s remaining interest in a Production Sharing Contract (the “PSC”) which relates to Oil Mining Leases 120 and 121 (“OML 120” and “OML 121”) granted to Allied by the Federal Republic of Nigeria (the “Non-Oyo Contract Rights”).

Speaking on the development, Byron Dunn, CAMAC Energy’s President and Chief Executive Officer, said: “We look forward to again receiving NAE’s consent and closing this transaction, just as NAE approved the closing of our Oyo Field acquisition transaction in April 2010. This is transformational for CAMAC Energy and we are very excited about the potential value this acquisition could unlock across OML 120 and 121. We now have the opportunity to plan block development holistically, and to structure wells that not only effectively drain the existing Oyo Field producing horizons, but test deeper horizons in imaged Miocene reservoirs that underlay Oyo’s currently producing field.” Byron has for a while replaced Frank C. Ingriselli the former CEO of CAMAC Energy.

"The OML 120 block is located directly east of OML 133, which contains the giant 500 million barrel Erha Field, and north of OML 121, where in the southeast corner of the block Allied has detected signs of potential gas resources in preliminary drilling results. OML 120 covers an area of 916.6 sq km in water depths ranging from 150 to 1000 meters, and contains the Oyo Field. The OML 121 block covers an area of 887 sq km in water depths ranging from 150 to 1000 meters and is located directly south of OML 120. Based upon internal mapping and 3D seismic studies, nine new prospects have been identified by Allied within the OML 120/121 blocks. Based on available information, CAMAC Energy believes the OML 120/121 blocks, including these nine prospects, may potentially hold over 500 million barrels of recoverable oil resources."

Dr. Kase Lawal is the Chairman of Camac Energy Inc.

About CAMAC Energy Inc.

Chairman, Dr. Kase Lawal Byron A. Dunn, President, CEO and Director

CAMAC Energy Inc. (NYSE Amex: CAK) is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. CAMAC Energy focuses on early cash flow and high-return global energy projects and currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. CAMAC Energy's principal assets include interests in the Oyo Field, an offshore oil asset in deepwater Nigeria that started production in December 2009, a 100% interest in the Zijinshan Gas Block asset located in the Shanxi Province, China, and the Enhanced Oil Recovery and Production business in Northern China. CAMAC Energy has offices in Hartsdale, New York, Houston, Texas, Beijing, China, and Lagos, Nigeria.