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AFRICA OIL ANNOUNCES STRATEGIC FARM DOWN AGREEMENT FOR ITS ORANGE BASIN BLOCK 3B/4B
AFRICA OIL ANNOUNCES STRATEGIC FARM DOWN AGREEMENT FOR ITS ORANGE BASIN BLOCK 3B/4B Can...
About this update from Meren Energy Inc.
[{"type":"text","content":"\n \n \n \n AFRICA OIL ANNOUNCES STRATEGIC FARM DOWN AGREEMENT FOR ITS ORANGE BASIN BLOCK 3B/4B\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n March 6, 2024\n \n \n /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI)\n \n – Africa Oil Corp.\n \n (\"Africa Oil\", or the \"Company\") is pleased to announce its wholly-owned subsidiary, Africa Oil SA Corp. (\"AOSAC\") has signed a strategic farm down agreement (\"Agreement\") with TotalEnergies EP South Africa B.V. (\"TotalEnergies\") and QatarEnergy International E&P LLC (\"QatarEnergy\") for the Orange Basin Block\n \n 3B\n \n /\n \n 4B\n \n , offshore\n \n South Africa\n \n . Through AOSAC, the Company currently has an operated 26.25% interest in Block\n \n 3B\n \n /\n \n 4B\n \n and has entered the Agreement jointly with its partners Eco (Atlantic) Oil & Gas Limited (\"Eco\") and Ricocure (Proprietary) Ltd (\"Ricocure\"), through their respective subsidiaries.\n \n View PDF version\n \n \n \n On completion of the transaction, Africa Oil will retain a 17.00% interest and the operatorship of Block\n \n 3B\n \n /\n \n 4B\n \n will transfer to TotalEnergies.\n \n \n \n Transaction Highlights:\n \n \n \n \n Maximum transaction value of up to\n \n $46.8 million\n \n to Africa Oil.\n \n \n Africa Oil will receive, subject to achieving certain milestones defined in the Agreement, staged payments for a total cash amount of\n \n $10.0 million\n \n , of which\n \n $3.3 million\n \n is payable at Completion, as defined below, and the remaining balance in two successive payments conditional upon achievement of key operational and regulatory milestones.\n \n \n Africa Oil will also receive a full carry of its 17.00% retained share of all JV costs, up to a cap, that is repayable to TotalEnergies and QatarEnergy from production, and which is expected to be adequate to fund the Company's share of drilling for up to two wells on the licence.\n \n \n \n Completion of the Agreement (\"Completion\") is subject to the satisfaction of customary conditions pr...