03:46 PM EDT, 11/01/2024 (MT Newswires) -- Africa Oil ( AOIFF ) said Friday afternoon its investee, Impact Oil & Gas, completed the farm down of its interests in blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia.

Impact also got about US$99 million as reimbursement for its share of costs related to the blocks before Jan. 1. It will retain a 9.5% interest in each block and will benefit from a carry loan covering all its remaining development, appraisal, and exploration costs until it receives the first sales proceeds from oil production, the company said.

"The farm down completion also satisfies a condition precedent to the amalgamation to effect the consolidation of all of Prime Oil & Gas Cooperatief U.A. in Africa Oil ( AOIFF ). We expect to close the amalgamation during the first quarter of 2025," Africa Oil ( AOIFF ) Chief Executive Roger Tucker said.

Africa Oil ( AOIFF ) currently owns about 32.4% of Impact. After finalizing the call and put option deal with three Impact shareholders, its stake in Impact will increase to about 39.5%, equating to an effective economic interest of about 3.8% in the blocks, the company said.

The company's shares were last seen down $0.04 to $1.75 on the Toronto Stock Exchange.

Price: 1.75, Change: -0.04, Percent Change: -2.23