Canada-listed Africa Oil will transfer its stake in two production sharing agreements in the Somali territory of Puntland to Denovo Capital, to own 50 per cent
Africa Oil will transfer the 60 per cent stakes in the Dharoor Valley and Nugaal Valley agreements to Denovo in exchange for 27.8mn shares in the company.
Following the transaction, Denovo plans to change its name to Horn Petroleum and undertake a share consolidation on a 1 for 0.65 basis.
The consolidation will follow a $40.98mn private share placement to fund Denovo’s Dharoor Valley drilling expenses, for which Africa Oil subscribed $10mn.
Drilling campaign
The two well exploratory drilling campaign was underway, Africa Oil said, with drilling locations, with the company entering into contracts with drilling and drilling related subcontractors, as well as ground drilling and logistical operations.
The Puntland Government has given its approval for the formation of Horn Petroleum and the pending transaction.
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