Africa Oil Boosts Stake in Prospective Orange Basin Block to 18%
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Africa Oil Corp. AOIFF recently announced the completion of a transaction with Eco (Atlantic) Oil & Gas, following which the company’s stake in Block 3B/4B in the Orange Basin offshore South Africa increased from 17% to 18%.Consideration for the AOIFF-Eco DealThe terms of the consideration laid down that Eco would transfer 1% of its stake to Africa Oil in exchange for AOIFF giving up its equity rights in Eco.Per the deal, Africa Oil canceled about 54.94 million common shares and about 4.86 million warrants held in Eco. The exchange valued at C$11.5 million reflects Africa Oil's commitment to enhancing its asset base in the Orange Basin.As a result of the transaction, Africa Oil's representative has stepped down from Eco’s board of directors.An Insight Into Block 3B/4B of the Orange BasinBlock 3B/4B of the Orange Basin spans 17,581 km2 offshore South Africa with water depths ranging between 300m and 2500m. This block is deemed to have a large opportunity set of exploration prospects as it has about 14,000 km of 2D seismic and 10,800 km2 of 3D seismic projection. The block lies to the southeast and is on trend, as a number of oil discoveries, like Venus, have been made on it.The South African Mineral Resources and Energy Department’s environmental permit for a campaign involving the exploration of up to five wells also validates the exploration prospects of the block.Operating Interest of the BlockIn August 2024, AOIFF closed a farm-down deal with TotalEnergies and QatarEnergy for block 3B/4B, where Africa Oil, along with co-venturer Ricocure (Pty.) Ltd. transferred a combined 57% to TotalEnergies (33% operating interest) and its DWOB partner QatarEnergy (24%).Post the recently announced acquisition, the Africa Oil group now holds an 18% interest in Block 3B/4B, with other partners like TotalEnergies holding a 33% operating interest, QatarEnergy holding a 24% interest, Ricocure holding a 19.75% and Eco holding a 5.25% interest.AOIFF’s Zacks Rank and Key PicksCanada-based Africa Oil Corp. is an oil and gas exploration and development company. Currently, AOIFF has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at top-ranked stocks like ARC Resources Ltd. AETUF, Gulfport Energy Corporation GPOR and YPF Sociedad Anónima YPF. ARC Resources, Gulfport Energy and YPF Sociedad Anónima currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.YPF Sociedad Anonima is an international energy company based on the integrated business of hydrocarbons. The Zacks Consensus Estimate for YPF’s 2024 earnings indicates 50.59% year-over-year growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Arc Resources Ltd. (AETUF): Free Stock Analysis Report Africa Oil Corp. (AOIFF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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