The African Energy Corp., a Canadian oil and gas exploration Company, has terminated its farm-out agreement that would have granted it stake offshore Namibia, Reuters reported.
Under the terms of the agreement Africa Energy was going to acquire a 10% participating interest in Petroleum Exploration, License 37 located on the offshore of the Republic of Namibia (“PEL 37”). Africa Energy exercised its right to terminate the farm-out agreement as a result of due diligence procedures performed by the company which identified discrepancies in respect of certain agreed commercial terms of the farm-out transaction.
According to Yahoo Finance, the company entered the farm-out agreement late November last year with a subsidiary of Pancontinental Oil & Gas N.L.
Africa Energy Corp., shares are listed on the TSX Venture Exchange under the symbol “AFE”. The Company holds a 90% participating interest in Block 2B, offshore the Republic of South Africa and is actively building an exploration portfolio in Africa.