Octant Energy announced it has signed a term sheet with Rosseau Asset Management to receive a $10m fund for the acquisition of Afren’s assets in East Africa. The assets include Block L17/L18 and Block 1 in Kenya, as well as the Tanga Block in Tanzania, Oil News Kenya reported.
According to Proactive Investors, the company has launched the acquiring plan in 2015 and has been working on finishing the required customary approvals from the governments of Kenya and Tanzania. The deal is expected to be finalized by the end of April 2017, as it heads towards the final phase after signing the term sheet with Rosseau.
Octant’s CEO, Rick Schmitt, commented on the deal stating that “The position taken by Rosseau to support the efforts of Octant in its acquisitions speaks volumes about the quality of these assets.”
The financing will provide 8% interest per year, and will be divided into three tranches – with $1m in the first tranche that will be used to complete the acquisition of the Tanga Block, offshore Tanzania, while tranches two and three will use $4.5m in acquiring the Kenyan assets, Block L17/L18 and Block 1.