Oil & Gas

Africa Oil Corp. has successfully completed the acquisition of an additional 7.0% stake in Impact Oil and Gas Limited, as part of the call and put option agreement announced on August 27, 2024. This acquisition further solidifies Africa Oil's position in Impact, a company with significant assets in Namibia's Orange Basin. The purchase of 80,160,198 shares in Impact was completed at a price of GBP 0.57 per share, totaling GBP 45.7 million (approximately USD 60.4 million). This move enhances Africa Oil's strategic ownership and strengthens its influence over Impact’s operations and decision-making.

Africa Oil's Chief Executive Officer, Dr. Roger Tucker, expressed his satisfaction with the transaction, highlighting its strategic importance. "This purchase has enabled us to meet a key objective by significantly increasing our stake in Impact, which gives us more influence over a core asset and vital growth driver for the Company," he stated. The acquisition also positions Africa Oil to benefit from exciting prospects in the Venus oil development project and the exploration of Blocks 2912 and 2913B in Namibia. The Tamboti exploration well, currently being drilled, is one of the key areas that could further enhance Africa Oil’s growth potential in the region.

Following the acquisition, Africa Oil now holds 449,464,396 shares in Impact, representing an approximate 39.5% ownership on a fully diluted basis. The total cost of the transaction, including the option purchase of GBP 6.4 million (USD 8.4 million), reflects Africa Oil's commitment to expanding its presence in the region. This acquisition is expected to significantly bolster the company’s portfolio in Namibia, which is rapidly becoming a key area for oil development and exploration.

Africa Oil is a Canadian oil and gas company with substantial assets in deepwater Nigeria, as well as an exploration and appraisal portfolio in West and Southern Africa. Listed on both the Toronto Stock Exchange and Nasdaq Stockholm, the company continues to focus on growth opportunities in the African oil sector. The acquisition of an increased stake in Impact Oil and Gas is a crucial step in Africa Oil's ongoing strategy to enhance its exposure to high-potential energy assets in the Orange Basin and beyond.