Toronto Stock Exchange-listed Africa Oil is raising $100 million through a private placement sale of shares to Stampede Natural Resources, a platform company owned by private equity firm Helios Investment Partners. According to the press release posted on the firm’s website, the deal gives Stampede a stake of approximately 12.37% and a seat on the Africa-focused company’s board.
The net proceeds of the financing will be used for Africa Oil’s ongoing evaluation and development work in in East Africa. Andy Bartlett, an Oil and Gas partner at Helios commented, “Helios is delighted to invest in Africa Oil Corp, a company we consider to have one of the best management teams in the exploration and production sector. This is a flagship transaction for the firm to help develop Kenya’s nascent petroleum sector. The capital is being deployed to further this exciting project which we consider to be world class in terms of potential. It has all the right characteristics for the sector in a lower oil price environment.”
The closing of the financing is subject to regulatory approval and other customary conditions, and is expected to close by the end of May 2015.