Africa Energy has closed three deals giving it a 90% stake and operatorship of Block 2B offshore South Africa.
The company paid US$1 million to Afren to acquire a 25% participating interest in Block 2B. It also paid $2 million and shares to acquire all of Thombo Petroleum's 34.5% shares and agreed a farm-in agreement with Crown Energy for a 30.5% stake.
James Phillips, president and CEO for Africa Energy said: "A well drilled in this block by South African state company Soekor in 1988 discovered and tested light oil from a Cretaceous sandstone section confirming that this rift basin is hydrocarbon-bearing.
"Our proven Cape Town-based technical team has identified numerous prospects and potential drilling locations in Block 2B utilizing the previously acquired 3D seismic. The company continues to identify, evaluate and negotiate potential transactions within Africa during this current oil sector downturn, and I am confident this will be the first of a number of transactions to grow Africa Energy."