Africa Oil has signed a call and put option agreement with three shareholders in Impact Oil and Gas to purchase a material 7.0% interest in Impact ('Option Agreement'). If exercised, the Option Agreement will increase Africa Oil’s Impact shareholding to 39.5%.
Africa Oil Chief Executive Officer, Dr Roger Tucker, commented: 'Through our shareholding in Impact we have exposure to an exciting opportunity set in Namibia’s Orange Basin, including the Venus oil discovery, and a highly prospective exploration and appraisal program on Blocks 2913B and 2912. This purchase achieves the Company’s objective of materially increasing its ownership in Impact, enhancing its rights and influence over a core strategic asset and value driver for Africa Oil.”
Under the Option Agreement, the Company has the right to acquire an additional 80,160,198 shares in Impact at an exercise price of GBP 0.57 per share for a period of up to six months ('Option Period') from the Option Agreement’s signing date of August 27, 2024 ('Signing Date'). The Company has purchased the call option feature at a price of GBP 0.08 per underlying Impact share. If Africa Oil has not exercised its call option by the end of the fourth month post the Signing Date, Selling Shareholders have the right to put their Impact shares to Africa Oil at an exercise price of GBP 0.57 until the expiry of the Option Period.
If the Option Agreement is exercised, Africa Oil will hold 449,464,396 shares in Impact representing a 39.5% shareholding position on a fully diluted basis.
Source: Africa Oil
