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Namibia: Africa Energy acquires interest in PEL 37, offshore Namibia
13 Sep 2017
Africa Energy Corp has announced the acquisition of one-third of the shares in a subsidiary of Pancontinental Oil & Gas that holds a 30% participating interest in Petroleum Exploration Licence 37 ('PEL 37') offshore the Republic of Namibia.
Garrett Soden, Africa Energy's President and CEO, commented:
'We are pleased to partner with Pancontinental for an effective 10% interest in PEL 37 offshore Namibia. This transaction completes the discussions we began some time ago and demonstrates our commitment to this oil prone play. We look forward to the exploration well that may be drilled as early as next year.'
Africa Energy paid Pancontinental US$2.2 million at closing and will pay an additional US$5.5 million upon spud of the first exploration well provided that certain commercial conditions exist on the spud date.
Africa Energy previously entered into a farmout agreement with a subsidiary of Pancontinental Oil & Gas to acquire a 10% participating interest in PEL 37 in November 2016 but the original deal was terminated in March 2017 after Africa Energy 'exercised its right to terminate the Farmout Agreement as a result of due diligence procedures performed by the Company which identified discrepancies in respect of certain agreed commercial terms of the farmout transaction'.
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Source: Africa Energy Corp / energy-pedia