Azinam Acquires Significant Minority Stake in South African Explorer OK Energy
Azinam Ltd., an E&P company backed by private equity firm Seacrest Capital, has entered into an agreement with the principals of UK-based South Africa-focused exploration company OK Energy Ltd. whereby Azinam will become a significant minority shareholder in OK Energy.
Under the terms of the deal, the principals of OK Energy will also become minority shareholders in Azinam. OK Energy currently holds a 10% participating interests in two South African offshore exploration blocks.
The Northern Cape Ultra-Deep block (ER 274) is located in the Orange Basin off the country’s west coast, and is operated by Royal Dutch Shell Plc with a 45% interest, with Kosmos Energy Ltd. holding the remaining 45%. The East Algoa block (ER 257) lies in the Algoa Basin off South Africa’s southern coast, and is operated by Norwegian oil major Equinor ASA with a 60% interest, with TOTAL SA holding the remaining 30%. Both the licence positions include significant carries from the larger on-licence partners.
Upon completion of the transaction, Azinam will hold an effective 4.9% interest in each licence. The company currently holds interests in 8 licences covering an area of over 80,000 sq. km offshore Namibia and South Africa, and is the largest direct acreage holder in the region (on a gross basis).