Canada's Africa Oil pens deal to boost stake in Impact Oil and Gas

Canada-listed Africa Oil Corp. announced on August 27 that it had signed a call and put option agreement with three shareholders of Impact Oil and Gas to purchase a 7% interest in the company. If the option is exercised, Africa Oil’s shareholding in Impact will increase to 39.5%.

“Through our shareholding in Impact, we gain exposure to exciting opportunities in Namibia’s Orange Basin, including the Venus oil discovery and a highly prospective exploration and appraisal program on Blocks 2913B and 2912,” said Africa Oil CEO Roger Tucker. “This purchase aligns with the company’s objective of significantly increasing its ownership in Impact, thereby enhancing our rights and influence over a core strategic asset and value driver for Africa Oil.”

If the option agreement is executed, Africa Oil will hold 450mn shares in Impact, representing a 39.5% shareholding position on a fully diluted basis.

Africa Oil, which focuses on assets in Africa, has production and development assets in deep-water Nigeria. The company also has a portfolio of exploration and appraisal assets in West and South Africa, including the Venus light oil discovery offshore Namibia. These interests are held through direct ownership in concessions and shareholdings in investee companies.