Kinetiko completes acquisition of Afro Energy
Perth-based Kinetiko Energy has completed the acquisition of Afro Energy from Badimo Gas, it said on March 17. The deal was announced in December last year.
Department of mineral resources and energy in South Africa has consented to the transfer of a controlling interest in Afro Energy to Kinetiko. Afro Energy is a holder of exploration rights and applications totalling approximately 7,000 km2 with a certified gas resource of 4.9 trillion ft3. Kinetiko originally owned 49% of Afro. For its stake in Afro, Badimo will receive about 598mn Kinetiko shares.
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The ownership of 100% of the South African assets under one listed entity provides a wide range of financing options to develop the project, Kinetiko said in December.
Kinetiko and Badimo have been joint venture partners since just before Kinetiko’s IPO in July 2010 and shareholders in Afro Energy since April 2015. Under both relationships, the parties were obligated to contribute various amounts toward the operational activities being agreed and approved in South Africa.