Africa Oil Clinches Acquisition of Turkana Energy, Kenyan Asset
Africa Oil has closed the acquisition of all of the issued and outstanding shares of Turkana Energy Inc. ("Turkana") pursuant to a plan of arrangement. Pursuant to the plan of arrangement, the shares of Turkana were acquired in consideration for 7.5 million common shares of Africa Oil, with each share of Turkana being exchanged for 0.20647 of an Africa Oil share. In addition, Turkana convertible loans of Cdn $1 million were exchanged into common shares of Africa Oil at Cdn $1.27 per share.
Turkana's principal asset is a 100% interest in Block 10BB, a highly prospective oil exploration block in northwestern Kenya. The block is within the Tertiary rift trend of East Africa which has recently yielded major oil discoveries by operators such as Heritage and Tullow. Block 10BB is located immediately west of Africa Oil's Kenyan Block 10A and Block 9 and further consolidates the Company's holdings in the rich East African rift basin petroleum system.