Pursuing Marginal Field Opportunities in Nigeria through Acquisition of Shares in Burj Africa

Source: www.gulfoilandgas.com 4/29/2015, Location: Africa

Solo has exchanged its shareholding in Pan Minerals Oil and Gas AG for a direct holding of 15.9% in Burj Petroleum Africa Limited, a private UK registered company created with the purpose of participating in the current marginal field licensing round in Nigeria. Burj Africa has partnered with Mr. Phil Mulacek the founder of InterOil Corporation which has been credited with one of the most significant natural gas discoveries in Asia in the past 20 years.

Burj Africa, together with its partners, Global Oil and Gas and Truvent Consulting, has made application for two marginal fields in the current marginal field licensing round in Nigeria. These two adjacent fields contain a total of 10 wells that were drilled by an international major. These fields are believed by Burj Africa based on internal estimates to contain proven and possible recoverable oil reserves of 59.3 million barrels (13.5 million barrels net to Burj Africa after royalty).

Solo has also entered into an agreement to increase its investment in Burj Africa. Solo will acquire an additional 5% holding in Burj Africa at closing through a payment of US$200,000 in cash and, in due course, the equivalent of US$300,000 in 39,750,000 new Ordinary Shares at an issue price of 0.51 p per share. Upon completion, Solo will hold a total interest of 20% in Burj Africa.

Solo has also obtained the right, at its election, to convert the equity position in Burj Africa for a participating interest directly in the JV with Global in Nigeria. Terms of which are to be determined based on an independent third party valuation at a later date.

Solo will participate in the technical decision process with Burj Africa and Global, being represented on all relevant committees. Global will be the designated operator of any operations carried out by Burj Africa.

The holding cost of Solo's shares in Pan Minerals is currently equal to the acquisition cost of those shares, approximately £800,000. Following the transaction to convert those shares to a holding in Burj Africa and the acquisition of additional Burj Africa shares the total holding value in Solo's accounts will be approximately £1.1 million.

For more information about related Opportunities and Key Players visit West Africa Projects


Australia >>  8/11/2022 - Santos has acquired Hunter Gas Pipeline Pty Ltd which owns an approved underground gas pipeline route from Wallumbilla in Queensland to Newcastle in N...
Nigeria >>  8/11/2022 - Seplat Energy has become aware of a news report that Ministerial Approval of the Company's proposed acquisition of the entire share capital of Mobil P...

Mexico >>  8/10/2022 - Earthstone Energy, Inc. announced the closing of the acquisition of the New Mexico assets of Titus Oil & Gas Production, LLC and Titus Oil & Gas Produ...
Nigeria >>  8/10/2022 - Seplat Energy has become aware of news and social media reports alleging impropriety in the process of securing ministerial consent to the acquisition...

India >>  8/9/2022 - Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), has completed its 100% acquisition of Solenergi Power Private Limited ...
Tanzania >>  8/9/2022 - Orca Energy Group Inc. notes the announcement by Swala Oil and Gas (Tanzania) PLC (“Swala”) titled “IMPACT OF ACCOUNTING FAILURES IN PAEM ON SWALA ACC...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.