Labat Africa, the JSE listed BEE company, intends to invest in 5 oil and gas leases in Namibia, the company said in a statement.
The company said it has executed a letter of intent with Amicitia Holdings in order to purchase all of the issued shares in Palatina Petroleum thereby acquiring a majority participating interest in 5 Petroleum Exploration Blocks, Off-shore Namibia.
The company said there is considerable international interest in Namibian Oil and Gas exploration. The general expectation is that Namibia will be the “next big thing” in oil and gas exploration. Substantial discoveries in neighbouring Angola, have transformed that economy over the past decade.
The company added that expectations are high that this success will be emulated in Namibia. Already several international oil companies are investing there.
HRT commenced a drilling programme in the past month. Following their success in Brazil they are confident that the same can happen in Namibia as Brazil shares a geographical history with Namibia.
Labat CEO Brian Van Rooyen said “This is an opportunity that was introduced to us by GEM – one of our shareholders. GEM will be the main funder for the development of the leases acquired by Labat. GEM has a successful track record of investing in the energy industry and they are confident that Namibia has vast new potential as an oil and gas source”.
The company said recent large discoveries in Tanzania, Angola and Ghana, together with the already developed Nigerian fields, have captured the attention of the international investors. Consequently interest in African Exploration is at an all time high. It is projected that investments of billions of dollars will be made in exploration and development of the oil and gas industry in Southern Africa in the next 10 years.
Van Rooyen said the investment prospects were highly exciting.
Statement issued by Labat Africa