A Canadian oil and gas company, Octant Energy has announced plans to acquire assests in Kenya’s Block L17/L18, Kenya Block 1, and in Tanzania, the Tanga Block. This is after it signed ‘the Proposed Transaction’ pact with three subsidiary companies of Afren PLC to acquire assets in the Republic of Kenya and the United Republic of Tanzania.
The acquisition of the assests will see a team with extensive regional knowledge push for the respective Production Sharing Contracts (PSC) forward while raising the profile of the regions through the continued delivery of near term actionable items on these assets.
Richard Schmitt, President and CEO of Octant said in a press release, “I am encouraged to be working with assets I know well from my past experiences. This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further move towards energy security and domestic growth in the countries. For me, being a part of East African growth and development again is a great opportunity and privilege.”
The acquisition of the PSC’s‚ by Octant remains conditional on customary approvals from the respective governments. Once approval is received Octant will complete the acquisition of the PSC’s from Afren within 7 days. Currently, Octant is evaluating its future capital requirements with respect to these PSC‚ and will provide future updates with respect to the Proposed Transaction in due course.
Completion of the transaction is subject to a number of conditions including, but not limited to Exchange acceptance and, if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.