Africa Oil Corp (TSX:AOI) told investors it has participated in a US$95 million open offer by Africa-focused exploration company Impact Oil & Gas Limited with an investment of US$31.4 million.
The Canadian oil and gas company said Impact will use the capital raised in the offer to help fund its participating share of the multi-well drilling and testing programme to further evaluate and appraise the Venus discovery in the Orange Basin off the coast of southern Namibia.
Following the placement, Africa Oil said its strategic shareholding in Impact has increased to 31.1% from 30.9%, noting that it is the only publicly-listed independent exploration and production (E&P) company with exposure to Venus, a light-oil and associated gas field announced in February 2022. Impact holds a 20% participating interest share in Block 2913B (PEL 56) and an 18.9% participating interest share in the adjacent Block 2912 (PEL 91).
Specifically, Africa Oil said Impact will use the funds for the appraisal and development programme on Block 2913B, including the Venus-1A appraisal well, which spudded on March 4, 2023, re-entry of the Venus-1X discovery well and testing of both wells.
Funds will also be targeted at exploration activity on the neighbouring Block 2912 to determine the extent of the Venus discovery, including an exploration well, Nara-1X, and testing on the anticipated westerly extension of Venus into the neighbouring block.
If Nara-1X is successful, the company said it will be followed by the Nara-1A appraisal well and extended 3D seismic survey on the block.
Contact the author at stephen.gunnion@proactiveinvestors.com