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Africa Oil Corp retained Dundee Securities Europe LLP and Pareto Securities as bookrunners for a new issue of shares worth $100 million. The money will used this year to press ahead with an oil project in the South Lokichar basin in Kenya (blocks 10BB and 13T). With its partner and operator of the blocks, Tullow Oil, Africa Oil identified an estimated 600 million barrels of oil.
At least four exploration wells are planned as well as a continuation of work with the Ugandan and local authorities on a project to build an export pipeline.
Also in Kenya, Africa Oil and Tullow are currently drilling the Engomo 1 well on block 12A and another well, at Cheptuket, is to be sunk by September, 2016.
But in Puntland, the breakaway province of Somalia, Horn Petroleum Corp, in which Africa Oil holds a 45% stake, has reduced its manpower at Bosaso and suspended its operations. An application to extend its permit has been submitted to the authorities.
And Africa Oil is also selling off its 10% stake in the Adigala block in Ethiopia but could pursue exploration in the Rift Basin Area Block as the operator.
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