Africa Oil Corp.is pleased to announce that the acquisition of all of the issued and outstanding shares of Turkana Energy Inc. ("Turkana") by the Company has been approved by Turkana's common shareholders and the holders of Turkana's outstanding convertible debt. Turkana has also received final court approval and the consent of the Minister of Energy for Kenya.
Turkana shareholders approved the transaction at a special meeting held on July 15, 2009 with 100% of the votes cast in favor of the acquisition. The transaction was also approved by a unanimous vote of the holders of the outstanding convertible debt.
Having received all of the requisite approvals and consents, the parties propose to close the transaction on July 21, 2009. Pursuant to the plan of arrangement, the shares of Turkana will be acquired in consideration for 7.5 million common shares of Africa Oil. In addition, Turkana convertible loans of up to Cdn $1 million will be 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.
