Labat Africa Limited is pleased to announce that following its news release on May 20, 2013 it has signed an agreement with Amicitia Holdings Limited(“the Vendor”) on 20 June 2013, in terms of which it will acquire the entire issued share capital of Palatina Petroleum Limited (“Palatina”) (“the Acquisition”) for an acquisition price of US$14 million (“the Acquisition Consideration”).
The Acquisition, which is subject to the satisfactory completion of a due diligence investigation and the fulfilment of other conditions precedent, will provide Labat with an 85% participating interest in a license issued by the Government of Namibia to Palatina, for the right to engage in the exploration and development of oil and gas in respect of leases numbered 1909, 2009 and 2414 in offshore Namibia spanning over 25000km2, in the Walvis and Lüderitz basins, making Labat the 3rd largest offshore acreage holder in Namibia behind HRT and Chariots. The remaining 15 % will be held by NAMCOR and a local Namibian Group.
Labat is aggressively pursuing the opportunity of acquiring an additional 3 licenses through Palatina Petroleum Limited, and is in the process of evaluating the prospect of another 4 leases offered to us by unrelated third parties.“ We are very excited about the opportunity” says Labat CEO Brian Van Rooyen who is on his way to Namibia as part of the due diligence exercise.
There is obviously huge interest especially in the Lüderitz Basin where it is abuzz with industry activity. Companies have identified resources and have executed farm-in agreements. Labat together with GEM has entered into discussions with foreign players in exploring the possibility of farm-in agreements.
This, together with the recent HRT announcement and its continued drilling program has created a lot of interest amongst an array of current and prospective investors. Labat's shareholders and funders believe that it is an opportune time to acquire a substantial position in Namibia’s offshore oil and gas acreage for reasonable value prior to any further developments.
The Acquisition Consideration will be funded through draw downs at the companies discretion over a three year period against an agreed $100 million line of equity from GEM Global Yield Fund Limited and the issue of additional shares in Labat. Labat is well on its way to establishing a real oil, gas and energy operation in Sub Saharan Africa.
It is for this reason that Labat and its funders are also assessing the opportunity of acquiring some oil blocks in the Republic of Congo whilst discussions are under way with another group with a view to acquire substantial South African, proven gas reserves.
An Announcement to this effect will be made soon.