Page 15 - AfrOil Week 09 2020

AfrOil
NEWS IN BRIEF
AfrOil
Azinam doubles footprint
in South Africa via alliance
with OK Energy
Azinam, the Seacrest Capital-backed Southern Africa-focused oil & gas exploration company, is pleased to announce an agreement with OK Energy that will lead to Azinam doubling its exploration footprint offshore South Africa.
Azinam announces today that it has reached agreement on terms with the principals of OK Energy, whereby Azinam, subject to contract, will become a significant minority shareholder in OK Energy. OK Energy holds a 10% partic- ipating interest in two blocks offshore South Africa (Orange Basin and Algoa Basin). Upon completion, Azinam will hold an effective 4.9% interest in these licences. The principals of OK Energy will become minority shareholders in Azinam.
The Northern Cape Ultra-Deep block (ER 274) in the Orange Basin, in which OK Energy holds a 10% Participating Interest, is operated by Shell, with a 45% Participating Interest. Kosmos Energy owns the remaining 45% Participating Interest.
The East Algoa block (ER 257) in the Algoa Basin, in which OK Energy holds a 10% Partic- ipating Interest, is operated by Equinor with a 60% Participating Interest. TOTAL SA owns the remaining 30% Participating Interest.
OK Energy benefits from significant carries on the Northern Cape Ultra-Deep block and the
East Algoa block, resulting from prior farmouts to the other licence participants. As a share- holder in OK Energy, Azinam will benefit from these arrangements.
Daniel McKeown, Managing Director of Azinam, commented: “Azinam is delighted to announce that it is entering into a partnership with OK Energy. The OK Energy principals have an international reputation for the early identi- fication of high-potential exploration acreage. An indirect interest in OK Energy’s two South Africa licences gives Azinam further exposure to the Orange Basin and new exposure in the Algoa Basin. Both licence positions enjoy signif- icant carries from the larger on-licence partners. These positions offer a doubling of exploration exposure for Azinam offshore South Africa.” AziNam, February 26 2020
LEGAL
LEKOIL announces results
of investigation into OPL 310
Facility Agreement
LEKOIL, the oil and gas exploration and pro- duction company with a focus on Nigeria and West Africa, has announced the results of the investigation into the origination and execution of the loan agreement first announced by the Company on January 2, 2020, purportedly with the Qatar Investment Authority (QIA).
As announced on January 13 2020, following the discovery that the Facility Agreement had not been entered into with QIA, but instead with certain individuals falsely purporting to repre- sent QIA, the Board established an independent committee to investigate the origination and execution of the Facility Agreement and steps which might reasonably be taken to retrieve monies paid in association with the Transaction.
The Committee was supported in its review by Kroll Associates UK acting as third-party forensic investigators. Advice was taken from Herbert Smith Freehills, legal counsel engaged at the time of the Investigation, on discreet issues arising from Kroll’s work.
The Committee has reported to the Board the following results of the Investigation: The Facil- ity Agreement was a part of a fraud perpetrated against the Company, and the Facility Agree- ment, and the sums to be received by LEKOIL pursuant to it, are not legally binding; there is no evidence of any complicity of any LEKOIL Direc- tor or employee in the fraud; the Chief Executive Officer led the interaction and negotiations with the individuals falsely purporting to represent the QIA, on behalf of the Company, prior to ulti- mate approval being given by the Board to enter into the Facility Agreement; the Company has a legal claim to recover the $450,000 paid to Sea- wave Invest Ltd and its principals, in its capac- ity as introducer of those falsely purporting to represent the QIA; the Board only approved the execution of the Facility Agreement after a third- party global risk consultant engaged to under- take the due diligence investigation on Seawave, provided a report, based on public record search, that did not identify any “red flags” on Seawave or its principals; the fraud, whilst relatively elaborate and sophisticated, should have been capable of being detected by parties engaged to advise on the Facility Agreement, internally or externally, prior to its execution; and the due dil- igence undertaken by the Company, including the above-mentioned third-party due diligence report, prior to the signature of the Facility Agreement proved to be inadequate.
As a result of the Investigation, and follow- ing recommendations from the Committee, the Board has taken the following actions: com- menced steps to recover the $450,000 paid to Seawave, including the issuance of pre-action letter of demand against Seawave and its prin- cipals, Bismarck Abrafi and Said Memene; and Rilk Dacleu Idrac, the purported representative of the QIA; and commenced a review of the Company’s corporate governance practices and procedures for the review and approval of major transactions, with the intent of implementing suggested changes as soon as practicable. LEKOIL, March 02 2020
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