07:48 AM EDT, 08/27/2024 (MT Newswires) -- Africa Oil ( AOIFF ) on Tuesday signed a call and put option agreement allowing it to purchase an additional 7% of Impact Oil and Gas, potentially increasing its shareholding to 39.5%.

Under the terms, Africa Oil ( AOIFF ) has the right to acquire an additional 80,160,198 shares in Impact at 0.57 pounds per share for up to six months.

"Through our shareholding in Impact we have exposure to an exciting opportunity set in Namibia's Orange Basin, including the Venus oil discovery, and a highly prospective exploration and appraisal program on Blocks 2913B and 2912," Africa Oil ( AOIFF ) CEO Roger Tucker said. "This purchase achieves the company's objective of materially increasing its ownership in Impact, enhancing its rights and influence over a core strategic asset and value driver for Africa Oil ( AOIFF )."

Africa Oil ( AOIFF ) said it has purchased the call option feature at a price of 0.08 pounds per underlying Impact share.

If Africa Oil ( AOIFF ) has not exercised its call option after four months, selling shareholders have the right to put their Impact shares to Africa Oil ( AOIFF ) at 0.57 pounds until the expiry of the option period.