With $64Million To Spare, AOC Aims for More of Namibia’s Pie - Africa’s premier report on the oil, gas and energy landscape.

With $64Million To Spare, AOC Aims for More of Namibia’s Pie

By Toyin Akinosho

Africa Oil Corp. has offered to acquire from minority shareholders in Impact Oil and Gas Limited up to 8.0% of the issued shares in Impact.

This is expected to lead to AOC holding 39.1% of Impact, as the former currently holds a 31.1% shareholding in the latter.

The move, announced March 18, 2024, is the kind of transaction that any small producing independent, with some decent cash flow, should pay some attention to.

The significance of the proposed buy is derived from Impact’s 19.5% stake in Blocks 2912 and 2913B, the two Namibian offshore leases where the French major TOTAL has discovered the giant Venus field and adjoining accumulations.

With 39.1% holding in Impact, AOC will have around 7.8% of these two acreages.

But we are getting ahead of ourselves.

TOTAL is in the process of concluding a farmin into Impact ‘s stakes in these acreages, a transaction which, when concluded, will leave Impact with 9.5% of these two blocks. The farmin is awaiting the consent of Namibian authorities.

Should that be consummated, and should AOC conclude the 8% acquisition, AOC will have around 3.9% of Blocks 2912 and 2913B.

TOTAL’s Venus accumulation (two billion barrels of oil equivalent recoverable reserves) has moved up the scale of the most likely-to-be -developed of all the several discoveries made in Southern Africa in the last four years.

AOC says that the Offer it is making is at a price of $ 0.728 per Impact share, for a consideration of up to approximately $64Million, which implies a valuation of USD 805 million for 100% of the issued share capital of Impact.

“The share purchase is conditional upon completion of the farm down transaction for Impact’s Namibia assets announced on January 10, 2024. The Offer is made to select minority shareholders and is open for acceptance until April 5, 2024. Africa Oil is under no obligation to purchase any specific number of shares in Impact”.

Roger Tucker, AOC Chief Executive Officer, commented: ” 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”.

 

 

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