11:40 AM EST, 03/06/2024 (MT Newswires) -- Africa Oil Corp. ( AOIFF ) earlier Tuesday said its subsidiary Africa Oil SA Corp. has signed a strategic farm down agreement with TotalEnergies EP South Africa BV and QatarEnergy International E&P LLC for the Orange Basin Block 3B/4B offshore South Africa.

Africa Oil ( AOIFF ) has an operated 26.25% interest in Block 3B/4B and has entered the agreement jointly with its partners Eco (Atlantic) Oil & Gas Limited ( ECAOF ) and Ricocure (Proprietary) Ltd.

At deal completion, Africa Oil ( AOIFF ) will retain a 17.00% interest and the operatorship of Block 3B/4B will transfer to TotalEnergies.

The maximum transaction value is up to $46.8 million to Africa Oil ( AOIFF ). The company will also receive staged payments totaling $10.0 million in cash, of which $3.3 million is payable at deal completion. The remaining balance will be paid in two successive payments conditioned upon the achievement of key operational and regulatory milestones.

Completion is subject to customary conditions, including approvals from the South African government.

Africa Oil ( AOIFF ) at last look gained 3.6% in early Wednesday trading.

Price: 2.19, Change: +0.08, Percent Change: +3.55