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Highlights:
- Africa Oil Corp. (AOI) completes 7.0% interest purchase in Impact Oil.
- Total investment of USD 60.4 million increases Africa Oil's shareholding in Impact to 39.5%.
- Strategic focus on Namibia's Orange Basin and key exploration projects.
Africa Oil Corp. (TSX:AOI) (Nasdaq-Stockholm: AOI) has successfully completed the purchase of an additional 7.0% interest in Impact Oil and Gas Limited ("Impact"), under the call and put option agreement first announced on August 27, 2024. This acquisition underscores Africa Oil's commitment to strengthening its position in the energy sector, particularly in Namibia's highly prospective Orange Basin.
With the latest transaction, Africa Oil acquired 80,160,198 shares in Impact, bringing its total shareholding to approximately 39.5% on a fully diluted basis. The shares were purchased at an exercise price of GBP 0.57 per share, amounting to a total payment of GBP 45.7 million (USD 60.4 million). This investment is a significant strategic move, positioning Africa Oil to have greater influence over one of its key assets and a critical driver of future value.
Strategic Growth in the Orange Basin
Dr. Roger Tucker, Chief Executive Officer of Africa Oil, emphasized the strategic importance of this acquisition. "With this purchase, we have achieved a key objective of materially increasing Africa Oil's ownership in Impact, enhancing our rights and influence over a core strategic asset and value driver for the Company," said Dr. Tucker.
Africa Oil's heightened exposure to the Orange Basin, particularly in Namibia, offers significant growth potential. The area is home to the Venus oil development, one of the most exciting projects in the oil and gas sector. The Venus field's ongoing exploration and development are expected to bring substantial value to Africa Oil's portfolio, given the basin's proven potential for large-scale oil discoveries.
In addition to the Venus oil development, Africa Oil is also focused on an exciting exploration program on Blocks 2912 and 2913B. This program includes the Tamboti exploration well, which is currently in the process of drilling, marking another promising step in the Company’s expansion efforts.
Africa Oil’s Enhanced Role in Impact Oil
Following the completion of this purchase, Africa Oil now holds a commanding 39.5% interest in Impact. This strategic increase in ownership provides Africa Oil with a larger stake in Impact's future success, especially as the latter focuses on developing its assets in the Orange Basin.
The transaction also involved a cost of GBP 6.4 million (USD 8.4 million) paid in Q3 2024 for the option purchase, bringing the total investment in the deal to approximately USD 68.8 million. This deal is expected to further solidify Africa Oil's presence in the region and unlock new opportunities for growth in both the short and long term.
