Africa Oil Corp. has offered N$1.2 billion (US$64 million) to acquire up to 8% of the minority shareholders in Impact Oil and Gas Limited.
Africa Oil currently holds a 31.1% shareholding in Impact Oil and Gas.
Impact Oil and Gas has an 18.89% interest in Block 2912 and 20% in Block 2913B in the Orange Basin, off the coast of Namibia.
The share purchase is conditional upon completing the farm-down transaction for Impact’s Namibian assets, announced on January 10, 2024.
The offer is made to select minority shareholders and is open for acceptance until April 5, 2024.
The offer at US$0.728 per Impact share implies a valuation of US$805 million for 100% of Impact’s issued share capital.
Africa Oil is not obligated to purchase any specific number of shares in Impact.
TotalEnergies (Operator), Qatar Energy, and Namcor are the other partners.
In February 2022, the companies successfully drilled the Venus-1X well to a total depth of 6,296m, discovering significant quantities of light with associated gas within an Albian basin floor fan deposit.
Africa Oil CEO Dr Roger Tucker said the farm-down agreement with TotalEnergies materially enhances Impact’s investment case for Africa Oil.
Tucker said that Africa Oil retains exposure to Venus’ development and the significant follow-on upside potential on Blocks 2912 and 2913B at no upfront cost.
He said Venus is expected to add significant reserves and production to Africa Oil’s portfolio from the late 2020s through the 2030s.
“This measured advance in our strategic shareholding strengthens our influence over Impact, which is in line with our objectives for 2024.
“These include positioning Africa Oil as the leading independent E&P company in the Orange Basin, underpinned by its interests held through Impact, and its direct position in Block 3B/4B with a retained 17% interest on the completion of the farm-down agreement with TotalEnergies and QatarEnergy, announced on March 6, 2024,” Tucker said.
He added that the capital allocation reflects Impact’s ability to drive Africa Oil’s valuation and future growth, taken alongside our share buy-back and dividend programmes currently underway.
Tucker further said Africa Oil is determined to build the business value while offering our shareholders immediate capital returns.
“From today, we will increase the daily volume of share repurchases under the current buy-back programme,” Tucker said.
