Andrew Bell says Red Rock Resources (LON:RRR) is starting a new phase, as he teams up with Matt Lofgran for an oil exploration venture in West Africa.

RRR has secured an option to invest nearly £700,000 into Elephant Oil, a privately owned company, which has a production sharing contract for 4,500 square kilometres onshore Benin.

"Having finished the first stage of change at Red Rock by repayment of debt, by disposals, and by other actions, this begins the second stage,” said chairman Andrew Bell.

“We have with our Ivory Coast investment focussed on the emerging and neglected potential of some countries in Francophone West Africa, and this option to invest in Elephant potentially allies us with a like-minded company which has worked diligently to establish an early presence.”

Elephant Oil is currently preparing a new 2D seismic programme which will be a precursor for the first onshore exploration well in the country. Seismic will start next year, once an Environmental Impact Assessment has been completed and approved.

RRR has the option initially to put £275,000 into Elephant Oil, buying just over 1mln new shares at a price of 25.3p, and it will subsequently be able to invest a further £412,500 at the same price up to six months later.

Matt Lofgran, chief executive of AIM quoted Nostra Terra, is managing director of Elephant Oil.

“An investment in Elephant would enable the experienced team at Elephant, led by Matt Lofgran, Gavin Burnell, and Martin Keeley to make further progress, and create synergies and future opportunities for Red Rock," Bell added.