/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Dec. 20, 2018
/CNW/ - Africa Oil Corp. (TSX: AOI) (OMX: AOI) ("Africa Oil",
"AOC" or the "Company") is pleased to announce that it has made
further investments of US$20.5
million in Impact Oil and Gas Limited ("Impact"), a private UK
company with exploration assets in South and West Africa. View
PDF Version
Additional Investment in Impact Oil and Gas
The Company has entered into a subscription agreement (the
"Subscription Agreement") with Impact providing for the exercise by
AOC of the 50,343,961 ordinary share purchase warrants in Impact
held by AOC at an exercise price of £0.18 per warrant and the
purchase by AOC of ordinary shares of Impact in an aggregate amount
of US$6.3 million. Additionally, AOC
completed the previously announced acquisition of additional shares
and warrants in Impact for an aggregate subscription price of
US$2.5 million in November 2018 which, combining with the current
investment, will result in Africa Oil holding an approximately 30%
interest in Impact.
The funds provided by AOC to Impact are to be used by Impact as
a loan to Arostyle Investments (Proprietary) Limited to allow Main
Street 1549 Proprietary Limited ("Main Street") to acquire a 5.1%
effective interest in Block 11B/12B offshore
South Africa. Block 11B/12B is located
in the Outeniqua Basin approximately 175 kilometers off the
southern coast of South Africa.
The block covers an area of 18,734 square kilometers with water
depths ranging from 200 to 2,000 meters. The Brulpadda-1AX
re-entry well is expected to commence drilling before the end of
this year. The partners in the 11B/12B block are
Total S.A. (45%), Canadian Natural Resources Limited (20%), Qatar
Petroleum (25%) and Main Street (10%). Africa Energy Corp. holds a
49% interest in Main Street and Africa Oil holds an
approximately 34.6% interest in Africa Energy Corp.
Africa Oil CEO Keith Hill
commented, "We are very pleased to have significant investments in
two companies that have invested in Main Street, which has a
material interest in the upcoming Brulpadda well. We believe the
Brulpadda well to be one of the top exploration wells to be drilled
in the world in 2019. The well will be operated by TOTAL, which
gives us confidence that not only can the well can be drilled
safely and effectively, but that the necessary technical and
financial resources will be in place to move forward on any
resulting discovery.".
The transactions contemplated by the Subscription Agreement are
subject to certain customary conditions to closing, including
shareholder approval of Impact.
About Africa Oil Corp.
Africa Oil Corp. is a Canadian oil and gas company with assets
in Kenya and Ethiopia and has recently signed an agreement
to acquire an interest in a producing asset in deepwater
Nigeria. The Company is listed on
the Toronto Stock Exchange and on Nasdaq Stockholm under the symbol
"AOI".
Additional Information
The information in this release is subject to the disclosure
requirements of the Company under the EU Market Abuse
Regulation. This information was publicly communicated
on December 20, 2018 at 2:00 p.m.
Eastern Time.
Cautionary Language
Certain statements made and information contained herein
constitute "forward-looking information" (within the meaning of
applicable Canadian securities legislation). All statements in this
news release, other than statements of historical facts, including
statements with respect to the timing of drilling of
the Brulpadda-1AX re-entry well and the planned
completion of the transactions contemplated by the Subscription
Agreement are forward-looking statements. Such statements and
information (together, "forward looking statements") relate to
future events or the Company's future performance, business
prospects or opportunities. Forward-looking statements include, but
are not limited to, statements with respect to estimates of
reserves and or resources, future production levels, future capital
expenditures and their allocation to exploration and development
activities, future drilling and other exploration and development
activities, ultimate recovery of reserves or resources and dates by
which certain areas will be explored, developed or reach expected
operating capacity, that are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions of
management.
All statements other than statements of historical fact may
be forward-looking statements. Statements concerning proven and
probable reserves and resource estimates may also be deemed to
constitute forward-looking statements and reflect conclusions that
are based on certain assumptions that the reserves and resources
can be economically exploited. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or
phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements". Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil
prices, results of exploration and development activities,
uninsured risks, regulatory changes, defects in title, availability
of materials and equipment, timeliness of government or other
regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking
statements.
The Company provides no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The Company does not
assume the obligation to revise or update these forward-looking
statements after the date of this document or to revise them to
reflect the occurrence of future unanticipated events, except as
may be required under applicable securities laws.
SOURCE Africa Oil Corp.