Petrel Resources will spend £1.3 million, in cash and new shares, to acquire certain African exploration interests of Heritage Oil and Gas. The deal will give Heritage a 22.5 per cent stake in the enlarged Petrel equity. The consideration involves £250,000 cash and 8.5 million new Petrel shares. The agreement is subject to contract. Petrel will receive a 5 per cent carried interest in three offshore Namibian blocks. The licence requires that 3,000 kms of seismic is shot within a year and a hole must be drilled within two years. Petrel will also receive a 10 per cent working interest in a million acre onshore-offshore hydrocarbon concession in Uganda.
Heritage is a privately-owned company with oil and gas exploration and production interests in Namibia, Angola, Congo (Brazzaville), Uganda, Oman and India. Dr John Teeling, chairman of Petrel, said: "This is exactly the type of project which Petrel was seeking.
Offshore west Africa is one of the hottest oil and gas plays in the world."
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