As part of a new corporate strategy, Africa Energy Corp on Thursday announced that, it has implemented three decisive agreements which will allow it obtain a 90% working interest and operatorship in Block 2B offshore South Africa.

The first agreements include, a sale and purchase contract in administration with Afren, whereby the Africa Energy is to obtain the Afren plc subsidiary holding a 25% participating interest in Block 2B for a cash consideration of $1 million.

Meanwhile, the second is a share acquisition agreement to obtain all of the stakes of Thombo Petroleum. Thombo is a privately owned company which holds a 34.5% participating interest in Block 2B for a cash consideration of $2 million in addition to the issuing of 14.8 million new common shares of the Company.

The third is Farm-in agreement with Crown Energy to obtain a 30.5% participating interest in Block 2B. Africa Energy is to repay Crown for $0.3 million of net back expenses and also finance expenses for Crown Energy’s outstanding 10% participating interest related with the drilling and testing of the following well in Block 2B.

According to the company, the achievement of each of these deals is based on receipt of all necessary government and other regulatory approvals as well as third party consents and relinquishment of pre-emptive rights. It also plans to finance the transactions, through the selling of up to 115,041,666 of its common shares on a non-brokered, private placement basis, at a price of $0.0435 per share for gross proceeds of about $5 million, Benzinga News reports.

Block 2B is an unexplored, superficial water area off the west coast of South Africa. It contains an established hydrocarbon-bearing rift basin and numerous prospects pointed out recently by a 3D seismic. Limited work is now needed to resume drilling activities in the area.