Canadian oil and gas company Africa Energy has signed agreements to increase its stake from 4.9% to 10% in Block 11B/12B in the Outeniqua basin offshore South Africa.
The Outeniqua basin covers an area of 18,734km2, and is contained in water depths ranging from 200 to 2,000 meters. The operator of Block 11B/12B, Total E&P South Africa, has a 45% interest, while Qatar Petroleum and CNR International own 25% and 20%, respectively.
Africa Energy currently holds a 49% interest in Main Street 1549 – a black economic empowered company – which has a 10% stake in Block 11B/12B. Arostyle Investments owns the remaining 51% stake in Main Street 1549.
“Block 11B/12B offshore South Africa contains one of the most exciting oil and gas exploration plays in the world today,” says Garrett Soden, President and CEO of Africa Energy. “In anticipation of the Luiperd-1X well results expected later this year, we have agreed with Impact and Arostyle to simplify and consolidate Main Street’s 10% interest in Block 11B/12B under Africa Energy.”
Africa Energy has entered into an investment agreement with Impact and Impact Oil & Gas SA Blocks 11B-12B Limited whereby Africa Energy will subscribe for new shares and obtain control of Impact 11B/12B. In parallel with the transaction with Impact, Africa Energy and Arostyle have entered into an implementation agreement that provides for certain amendments to the existing Main Street shareholders’ agreement and the Arostyle Loan Agreement
Upon completion of the agreements, Impact and Arostyle will become significant shareholders of Africa Energy.
“We are pleased to be part of the proposed consolidation of the interests of all Main Street stakeholders under Africa Energy, resulting in Africa Energy holding a direct 10% interest in Block 11B/12B,” said Siraj Ahmed, CEO of Impact Oil & Gas.