AOC Buys into South Africa Explorer Impact

Toronto-listed and Vancouver-based Africa Oil Corp (AOC) said February 7 it has agreed to invest $15mn in shares in Impact Oil and Gas, giving it a roughly 25.2% stake in that UK private Africa explorer.

Impact Oil and Gas acquired its first asset, the Tugela South Exploration Right offshore South Africa, in 2011 and has subsequently expanded its asset base across the offshore margins of southern and western Africa. It has since partnered with ExxonMobil and Statoil (South Africa), CNOOC (the AGC block between Senegal and Guinea Bissau), and Total (Namibia and South Africa). To date, significant gas resources have been discovered by others offshore Senegal/Mauritania though none yet off Senegal/Guinea Bissau.

AOC had a request to renew its Senegal Offshore Sud Profond (so near the AGC block) rejected last year by the Senegalese government and said it feared this was part of a strategy of favouring majors and bigger explorers. But it  has upstream interests in Kenya and Ethiopia, including the South Lokichar Basin (25% working interest in Kenyan blocks 10BB and 13T, alongside operator Tullow Oil).

Impact said February 7 its agreement with AOC is part of a wider plan to raise up to US$35mn through share sales. Meanwhile the company, whose overall portfolio covers a combined area of over 90,000 km² (gross). is seeking a partner for its Gabonese assets.