Continental Focus, International Reach

Africa Oil Acquires Stake in Impact Oil & Gas

Wednesday, February 14, 2018

Africa Oil Corp. is picking up a stake in Impact Oil & Gas. According to the company, it signed agreements to acquire a 25.2% equity interest the UK-based firm which holds assets in Senegal, Guinea Bissau, Namibia, Gabon, and South Africa. Under the agreements, Africa Oil will purchase 59,681,539 ordinary shares and 29,840,769 ordinary share purchase warrants belonging to Impact for an aggregate subscription price of around $15million.

Another agreement signed by Africa Oil will allow it to acquire 70,118,381 shares and 15,529,731 warrants currently held by Helios Natural Resources 2 in the capital of Impact.

In exchange, the company will offer 13,946,545 common shares to Helios.

Africa Oil CEO Keith Hill said: “We are very pleased to acquire a significant interest in Impact, which holds a highly attractive portfolio in West and South Africa that has the potential for major discoveries in the short and medium term.This investment is a strong complement to our existing holdings in Africa Energy and ECO Atlantic and results in Africa Oil having exposure to some of the most exciting exploration plays in Africa to complement our Kenya development project.The structure of these investments allows us to preserve the necessary cash to ensure we can get to first oil without issuing additional equity.”

The closure of the transactions is conditional upon certain customary closing conditions, including approval of the TSX and shareholder approval of Impact.


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