Page 18 - AfrOil Week 34

AfrOil NEWS IN BRIEF AfrOil

“On the environmental front, we can expect
to see a reduction in pollution due to pipeline
leaks because operators will be better equipped
to maintain pipelines and respond quickly to
incidents. At RusselSmith, our focus remains
on providing smart technology solutions to help
our customers unlock more value from their
assets in safe and efficient ways”.
RusselSmith Group, August 16 2020

INVESTMENT Main Street’s 10% interest in Block 11B/12B the Impact Transaction.
under Africa Energy.” The Impact Transaction is independent of
South Sudan to conduct shares in Main Street 1549 (Proprietary), Energy disinterested shareholder approval and
Africa Energy currently holds 49% of the the Arostyle Transaction and is subject to Africa
minerals and oil survey to which has a 10% participating interest in Block TSX Venture Exchange approval. Closing of the
11B/12B. Total E&P South Africa is operator Impact Transaction is expected to occur in Octo-
attract potential investors and has a 45% participating interest in Block ber 2020.
Arostyle Transaction: In parallel with the
11B/12B, while Qatar Petroleum International
South Sudan’s state-owned oil company Nile Upstream and CNR International (South Impact Transaction, Africa Energy and Arostyle
Petroleum Corporation (Nilepet), plans to Africa) have 25% and 20% participating inter- have entered into an implementation agreement
conduct a survey of both its oil and mineral ests, respectively, in Block 11B/12B. that provides for certain amendments to the
resources to attract more investors and help The Company is pursuing two transactions existing Main Street shareholders’ agreement
speed up exploration and production in the by which Africa Energy will first secure the and the Arostyle Loan Agreement, which among
country. indirect financial interest held by Impact Oil & other things, provides for the Arostyle Option.
According to Chol Deng Thon Abel, Man- Gas and then obtain an option from Arostyle The Implementation Agreement and the
aging Director of Nilepet, only 10% of South Investments (RF) (Proprietary), which holds amendments to the Main Street SHA provide
Sudan’s oil reserves have been surveyed. 51% of the shares in Main Street, to acquire the that Africa Energy has agreed effective imme-
“So you still have 90% of the country not entire Participating Interest after drilling the Lui- diately to fund 100% of the obligations of Main
surveyed. But we still believe that we have huge perd-1X well. Street for a risk-adjusted return linked to the
reserves, which is why we say South Sudan is Following the Impact Transaction and exer- proceeds on any future sale of Main Street or the
an oil-rich country,” said Abel, adding that the cise of the Arostyle Option, subject to various Participating Interest.
state-owned oil company is working on attract- consents and approvals, Africa Energy will In addition, the Main Street SHA provides
ing investors to invest in 14 oil blocks, with more directly hold the Participating Interest, and both for the Arostyle Option whereby either party has
blocks available due to prevailing peace and Impact and Arostyle will be significant share- the right to trigger the sale of the Participating
stability. holders of Africa Energy. Interest to a wholly-owned subsidiary of Africa
South Sudan has huge mineral potential Impact Transaction: Africa Energy has Energy. The Arostyle Option will become exer-
including gold, iron ore and tin among others. entered into an investment agreement with cisable by either party after completion of the
The country is currently producing 170,000 bar- Impact and Impact Oil & Gas SA Blocks 11B- Luiperd-1X well and is subject to receiving all
rels per day (bpd), down from 190,000 bpd due 12B whereby Africa Energy will subscribe for required regulatory approvals and joint venture
to the COVID-19 pandemic. new shares and thereby obtain control of Impact partner consents and waivers. Exercise of the
Africa Oil & Power, August 24 2020 11B/12B, a wholly-owned subsidiary of Impact, Arostyle Option would result in Arostyle being
whose sole asset is the Arostyle Loan Agreement issued 64,455,916 Common Shares. In addition,
Africa Energy increases that provides for an indirect financial interest the amendments to the Main Street SHA provide
in Main Street. Impact has also entered into a for a restriction on the issuance of Common
exposure to Block 11B/12B subscription agreement with Africa Energy to Shares (or securities convertible into Common
subscribe for 509,092,771 common shares of Shares), except for the Subscription Shares and
offshore South Africa Africa Energy that is subject to completion of for other corporate matters, prior to completion
the Investment. The Subscription Shares will be of the Luiperd-1X well.
Africa Energy Corp, an oil and gas company issued shortly after closing of the Investment. Closing of the Arostyle Transaction is
with exploration assets offshore South Africa The Investment Agreement provides Impact dependent on closing the Impact Transac-
and Namibia, has announced the signing of with the right, for so long as it holds not less than tion and is subject to TSX Venture Exchange
definitive agreements to increase its effective 10% of the common shares of Africa Energy, to approval.
interest in Block 11B/12B offshore South Africa appoint one (1) nominee to the board of direc- Upon completion of the Impact Transaction
from 4.9% to 10%. tors of Africa Energy. The Investment Agree- and the transactions contemplated by the Aro-
Garrett Soden, the Company’s President and ment also provides for certain orderly market style Option, Africa Energy will have acquired
CEO, commented: “Block 11B/12B offshore covenants in respect of any dispositions by the entire Participating Interest, and Impact and
South Africa contains one of the most exciting Impact of the Subscription Shares, customary Arostyle, in aggregate, will have subscribed for
oil and gas exploration plays in the world today. standstill provisions for a period of 12 months 573,548,687 Common Shares. Africa Energy
In anticipation of the Luiperd-1X well results and certain restrictions on the issuance of Com- currently has 798,984,935 Common Shares
expected later this year, we have agreed with mon Shares (or securities convertible into Com- outstanding.
Impact and Arostyle to simplify and consolidate mon Shares) by Africa Energy prior to closing of Africa Energy, August 24 2020

P18 www. NEWSBASE .com Week 34 26•August•2020