Africa Energy Corp.
Property Acquisition and Private Placement Financing
In December 2015 / January 2016 we acted for Africa Energy Corp. in respect of the acquisition of a 90% working interest in, and operatorship of, the Block 2B petroleum license offshore the Republic of South Africa and the completion of a concurrent US$5 million private placement of common shares.
The interest in Block 2B was acquired through the negotiation and completion of three separate transactions including the acquisition of a subsidiary of Afren plc. (in Administration), which subsidiary holds a 25% interest in Block 2B, the acquisition of Thombo Petroleum Ltd., a private company holding a 34.5% interest in Block 2B and a farmout agreement with Crown Petroleum AB for a 30.5% participating interest in the block. The aggregate cash consideration for the acquisition of the Block 2B interest was US$3.3 million plus the issuance of 14.8 million common shares of Africa Energy to the shareholders of Thombo and an agreement to pay certain drilling and testing costs on behalf of Crown. An additional US$1.5 million may be paid, or 20 million shares issued, to the Thombo shareholders, contingent on the achievement of certain milestones. Completion of the acquisition of the Block 2B interest is subject to various government and regulatory approvals, third party consents and waivers of pre-emptive rights.
The private placement completed in December 2015 with the issuance of an aggregate of 115,041,606 common shares at a price of US$0.0435 (Cdn$0.06) per share for gross proceeds of US$5 million.
Africa Energy Corp. is a TSXV-listed oil and gas exploration company focussing on oil exploration opportunities in Africa.