Westbridge Energy Corp. says it plans to acquire rights to a prospective Namibian offshore oil property in a share-and-cash deal valued at $5-million.
Under terms of the deal, Vancouver-based Westbridge will acquire the shares of privately held Kayuco Universal Ltd. in return for 10 million Westbridge shares at a deemed value of 20 cents a share and $3-million (U.S.) in cash.
Kayuco's main asset is an 80 per cent interest in an oil and gas petroleum exploration licence granted by the Namibian Ministry of Mines and Energy to explore within block number 1811B.
The remaining 20 per cent stake is a carried interest with certain back-in rights held by Namcor, the Namibian state oil company, and Lunganda Trading Enterprise, the Namibian economic empowerment group.
Block 1811B is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. Kayuco's interest in Block 1811B covers an area of approximately 5,854 square kilometres and is situated directly south of the current drilling activity of Chariot Oil and Gas Ltd., an exploration company that is listed on the AIM exchange in London.
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