Octant Energy is in a deal to buy Kenya’s oil assets after government received its approval for the transfer of oil blocks L17/L18, block 1 in Mandera- Lugh basin and another block in Tanga, Tanzania. The deal is expected to be finalized within the next two weeks after the firm revealed it had closed the second tranche of its debenture financing for KES930m (US$9mn).
In late 2015, the Canadian firm agreed to a deal to acquire the effectively “drill ready” assets from subsidiaries of Afren Plc via administrators.
Block L17/L18, in which the vendor has a 100% interest, lies in the Lamu coastal basin and both L17 and L18 cover an area of around 1,275 sq km and 3,630 sq km respectively. They are both onshore and in water depths varying from a few meters along the shoreline up to around 500 metres.
A published statement in the dailies from Octant Energy CEO and President said “The Corporation is pleased to report that progress is being made in connection with the satisfaction of the conditions for completion of the proposed transactions. The agreements to consummate the proposed transactions have a long stop date of April 30, 2017.”
The Lamu and Mandera blocks are valued at an estimated $4.5 million (about Sh465.26 million) each, while the Tanga block is valued at $1 million (about Sh103.39 million).