Cloudbreak Discovery PLC (LSE:CDL) told investors it is to participate in oil and gas exploration in Namibia in a venture alongside four other companies.
The company, in a statement, said it will act as a financial partner and sit on the joint operating committee for the venture which seeks to submit an application to acquire Petroleum Exploration License 1724 (Block 1724). It is working with Gondwana Petroleum, Timeworn Investments, Pioneer Oil and Gas Consulting and a Switzerland-based asset manager in the venture.
As part of the application, Cloudbreak has provided a letter of financial comfort and if the block is awarded it will provide a financial guarantee of up to US$120,000, supporting exploration efforts for the first year. Cloudbreak would hold a 10% interest in the block.
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“By deploying our project generation methodology and strategies into the energy sector, Cloudbreak has an opportunity to expand the scope of our exploration and development projects,” said Kyler Hardy, Cloudbreak chief executive.
“Recent discoveries by several major and midsized global energy companies in Namibia have opened significant opportunity to participate in new exploration initiatives in the country.
“Our local partners have been exploring and consulting for decades in the region and we are excited to work with them to advance this opportunity. We look forward to keeping shareholders updated with our progress."