Alberta Oilsands Heads to DRC
Alberta Oilsands Inc. has completed its transaction with a subsidiary of Pan African Oil Ltd. (PAO) to jointly pursue a PSA with respect to two blocks, the Kalembe Block (Block 5) and the Fatuma Block (Block 6), in which the company may earn a 43.75% interest in the DRC Blocks. PAO will remain the operator of the blocks.
The DRC Blocks comprise over one million acres (gross) covering the Kalemie sub-basin on Lake Tanganyika (DRC side) and are in the heart of the East African Rift System. Blocks 5 and 6 are adjacent to acreage held by Total.
As consideration for the closing, the company has paid to PAO an aggregate cash consideration of $1 million and issued five million common shares in the capital of the company at an attributed value of $0.10 per common share.
The cash consideration will primarily be used to pay for the past and anticipated upcoming costs and expenses of pursuing the PSA, up to the full amount of the cash consideration, after which time costs and expenses will be shared equally by AOS and PAO.
A finder's fee equal to 5% of the acquisition price payable half in cash and half in common shares at an attributed value of $0.10 per common share will be paid to an arm's length third party.
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