Africa Oil increases stake in massive Venus discovery in Namibia’s Orange basin
(WO) – Africa Oil Corp. has made a cash offer to acquire up to 8.0% of issued shares from minority shareholders in Impact Oil and Gas Limited. The offer is worth up to approximately $64 million, which implies a valuation of $805 million for 100% of the issued share capital of Impact. Africa Oil currently holds a 31.1% shareholding in Impact.
The share purchase is conditional upon completion of the farm down transaction for Impact's Namibia assets announced on January 10, 2024.
Africa Oil Chief Executive Officer, Dr Roger Tucker, commented, "The farm down agreement with TotalEnergies materially enhances Impact's investment case for Africa Oil. At no upfront cost, we retain exposure to the Venus development, and to the significant follow-on upside potential on Blocks 2912/2913B. Venus is expected to add significant reserves and production to Africa Oil's portfolio from the late 2020s through the 2030s.
This measured advance in our strategic shareholding strengthens our influence over Impact, in line with our objectives for 2024. These include positioning Africa Oil as the leading Independent E&P company in the Orange basin, underpinned by its interests held through Impact, and its direct position in Block 3B/4B with a retained 17% interest on the completion of the farm down agreement with TotalEnergies and QatarEnergy, announced on March 6, 2024.”
Africa Oil Corp. is a Canadian oil and gas company with producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in west and south of Africa, as well as Guyana. The Company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol "AOI".
