Africa Oil & Gas: Windfire signs agreement to acquire blocks offshore Namibia

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Oil & Gas Industry

Windfire Capital has signed a letter of intent, dated July 24, 2017, with DMiner Asset Management, pursuant to which Windfire proposes to acquire 91.5% of the issued and outstanding shares of Riviera Mina, a company incorporated under the laws of the Commonwealth of The Bahamas, from DMiner.

Riviera indirectly owns a 76.5% interest in Petroleum Exploration License No. 0079 in relation to Blocks 2815 and 2915. The License is a strategically located off-shore petroleum exploration license with extensive technical studies already concluded, including 1137 km2 of 3D seismic covering a significant prospective resource, that offers a drill-ready, multiple zone, oil and gas target in the Orange Basin of Namibia. The remaining interest in the License is held by the National Petroleum Corporation of Namibia (Namcor) and local Namibian partners.

King Frans Indongo, a Namibian local partner and proposed director of Windfire, commented:

‘This transaction is expected to result in another major investment into the Namibian oil and gas sector and demonstrates the confidence that a globally respected company like Windfire and its management team has in the immense potential for discovering oil or additional gas in Namibia. We will work closely with our Canadian partners not only with the goal of finding oil in Namibia, but also in striving to ensure that we contribute to the advancement of the Namibian nation. Windfire brings capital expertise, leading technical experts with significant offshore discovery success, and a work program to lead to oil development in our great country. With our international partners, Namibia is well positioned to realize its goal of energy independence.’

The Letter of Intent provides that, in consideration for the Acquisition, Windfire will pay a non-refundable deposit of US$150,000 to DMiner, issue 15,000,000 common shares of Windfire to DMiner, and pay an additional US$850,000 to DMiner in connection with the closing of the Acquisition. The Deposit will be paid upon approval of the TSX Venture Exchange. Under the Letter of Intent, the parties have also agreed to deal exclusively with each other until the earlier of December 29, 2017, entry into a definitive agreement with respect to the Acquisition, or termination of the Letter of Intent.

In connection with the Acquisition, Windfire intends to complete a private placement of subscription receipts for aggregate gross proceeds of up to $5,000,000 at a price of $0.25 per subscription receipt (or such other price and/or type of securities as may be mutually agreed to by Windfire and DMiner). The proceeds of the Financing are expected to be used for the payment of the closing cash consideration to DMiner, interpretation of existing data in connection with the License, preparation of a go-forward work program and for general working capital purposes. Finder’s fees are expected to be paid in connection with the Financing on such terms, and to such finders, as are to be determined at a future date.

Upon the Closing, the management and board of directors of Windfire are expected to consist mainly of individuals who were directly involved in the completion of the C$730m merger betweenUNX Energy and HRT Participações em Petróleo. The proposed appointments include:

  • Kevin Broger, CEO, President and Director – Mr. Broger was formerly CEO of Chariot Oil and Gas and HRT Canada.
  • Duane Parnham, Chairman – Mr. Parnham was formerly Chairman of UNX Energy.
  • Mark Frewin, Independent Director – Mr. Frewin was formerly a director of UNX Energy and provided legal guidance on all corporate and UNX/HRT merger matters.
  • Donald Sharpe, Independent Director – Mr. Sharpe was formerly an independent Director of UNX Energy and Chairman of the Special Committee assigned to consider the UNX/HRT merger.
  • King Frans Indongo, Independent Director – Mr. Indongo is Namibian national who is a shareholder in the License.

‘It is an absolute pleasure to work once again with my colleagues from UNX as well as the new members of the team who all share a goal in making a significant oil/gas discovery in Namibia’ states Duane Parnham, Director of DMiner. Duane Parnham further states: ‘This transaction provides the shareholders of Windfire with the opportunity to participate in the enormous potential of what our team believes is the undrilled crown jewel in Namibia. We have always been committed to completing this transaction with Windfire and believe the timing is now ideal to proceed and complete this RTO as shown through the improvement in the energy sector since 2015, increased investor sentiment being more favorable to energy and more locally (in Namibia) the increased presence and drill commitments of major players in the oil and gas industry’.

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Source: Windfire Capital

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