Africa Energy acquisition of further 5.10% interest in Block 11B/12B, offshore South Africa

On August 24, 2020, Africa Energy Corp. ("Africa Energy") announced the signing of definitive agreements to increase its effective interest in Block 11B/12B offshore South Africa from 4.9% to 10%.

Block 11B/12B, located in the Outeniqua Basin approximately 175 km off the southern coast of South Africa, covers an area of 18,734 square km with water depths ranging from 200 m in the north to 1,800 m in the south. The Lower Cretaceous Post-rift Paddavissie Fairway, which contains the Luiperd and Brulpadda discoveries, is located in the southwest corner of the block.

At the outset of the transaction, Africa Energy held 49% of the shares in Main Street 1549 (Proprietary) Limited ("Main Street"), which had a 10% participating interest in Block 11B/12B. Total E&P South Africa B.V., the operator of the block, held a 45% participating interest, while Qatar Petroleum International Upstream LLC and CNR International (South Africa) Limited held 25% and 20% participating interests, respectively.

Africa Energy pursued two transactions through which it first secured the indirect financial interest in Main Street held by Impact Oil & Gas Limited ("Impact") through a loan agreement with Arostyle Investments (RF) (Proprietary) Limited ("Arostyle"); and then obtained an option from Arostyle, which holds the remaining 51% of the shares in Main Street, to acquire Main Street's entire participating interest in Block 11B/12B on completion of the drilling of the Luiperd-1X well.

Further information on the transactions can be found on Canada Newswire's website.

Africa Energy is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia.