12-08- 2011: Canada-listed Africa Oil will transfer its stake in two production sharing agreements in the Somali territory of Puntland to Denovo Capital, in which it is soon to own 50%.
Africa Oil will transfer the 60% stakes in the Dharoor Valley and Nugaal Valley agreements to Denovo in exchange for 27.8 million shares in the company
Following the transaction, Denovo plans to change its name to Horn Petroleum and undertake a share consolidation on a 1 for 0.65 basis. The consolidation will follow a $40.98 million private share placement to fund Denovo’s Dharoor Valley drilling expenses, for which Africa Oil subscribed $10 million.
The two well exploratory drilling campaign was underway, Africa Oil said, with the company having entered into contracts with drilling and drilling related subcontractors, as well as ground drilling and logistical operations.
The Puntland Government has already given its approval for the formation of Horn Petroleum and the pending transaction.