Australia's Kinetiko Energy to acquire Afro Energy
Perth-based energy company Kinetiko Energy has signed an agreement to acquire 100% of Afro Energy from Badimo Gas, it said on December 24.
Kinetiko originally owned 49% of Afro, which holds the South African exploration rights and production approvals linked to its assets. For its stake in Afro, Badimo will receive about 598mn Kinetiko shares.
The ownership of 100% of the South African assets under one listed entity provides a wide range of financing options to develop the project, Kinetiko said. It will deliver a net contingent resource of 4.9 trillion ft3 to the company.
Kinetiko and Badimo have been joint venture partners since just before Kinetiko’s IPO in July 2010 and shareholders in Afro Energy since April 2015. Under both relationships the parties were obligated to contribute various amounts toward the operational activities being agreed and approved in South Africa.
“This mechanism has at times been inefficient and caused delays in exploration and development programs. The acquisition will eradicate these inefficiencies and expedite all South African operational activities,” Kinetiko said.