Africa Oil additional investment in Impact Oil and Gas
On December 20, 2018, Africa Oil Corp. ("Africa Oil") announced that it made further investments of US$20.5 million in Impact Oil and Gas Limited ("Impact"). As part of the investment, Africa Oil entered into a subscription agreement with Impact Oil and Gas Limited ("Impact"), providing for the exercise by Africa Oil of the 50,343,961 Impact ordinary share purchase warrants held by Africa Oil at an exercise price of £0.18 per warrant and the purchase by Africa Oil of ordinary shares of Impact in an aggregate amount of US$6.3 million.
Additionally, Africa Oil completed the previously announced acquisition of additional shares and warrants in Impact for an aggregate subscription price of US$2.5 million in November 2018 which, combining with the current investment, will result in Africa Oil holding an approximately 30% interest in Impact.
The net proceeds of the investment are being used by Impact as a loan to Arostyle Investments (Proprietary) Limited to allow Main Street 1549 Proprietary Limited to acquire a 5.1% effective interest in Block 11B/12B offshore South Africa—located in the Outeniqua Basin approximately 175 kilometers off South Africa's southern coast.
Further information can be found on Canada Newswire's website.
Africa Oil is a Canadian oil and gas company with assets in Kenya and Ethiopia and has recently signed an agreement to acquire an interest in a producing asset in deepwater Nigeria.
Impact is a privately owned oil and gas exploration company, dedicated to discovering new potential in underexplored sedimentary basins offshore Africa.