Africa Energy Closes Three Deals to Acquire 90% Interest in Block 2B Offshore, Republic of South Africa
Africa Energy reported that it has closed three transactions resulting in the Company acquiring a 90% participating interest and operatorship in Block 2B offshore the Republic of South Africa.
The Company paid US$1 million to Afren plc (in Administration) and certain of its subsidiaries to acquire a 25% participating interest in Block 2B.
The Company also paid US$2 million and issued 14.8 million new common shares of the Company to acquire all of the shares of Thombo Petroleum Ltd., a privately held company operating and holding a 34.5% participating interest in Block 2B. The Company may be required to issue up to an additional 20 million common shares of Africa Energy and, at the option of the Company, to either pay and/or issue up to US$1.5 million in additional contingent cash and/or shares of Africa Energy, if certain milestones associated with the commercialization of Block 2B are achieved.
The Company completed a farm-in agreement with a subsidiary of Crown Energy AB (“Crown”) to acquire a 30.5% participating interest in Block 2B. The Company will reimburse Crown for up to US$0.3 million of net back costs and will fund costs for Crown’s remaining 10% participating interest associated with the drilling and testing of the next well in Block 2B.
Source/ More On: Africa Energy
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