RE:RE:RE:Interesting... Kenya back in play?April 7, 2017 Octant Energy Corp said its deal to buy oil assets in Kenya is expected to be finalised within the next two weeks and revealed it had closed the second tranche of its debenture financing for US$9mln. In late 2015, the firm agreed a deal to acquire the effectively "drill ready" assets from subsidiaries of former oiler Afren Plc via administrators. Significantly, Octant has now received Kenyan government approval for the transfer of these assets. READ - Octant Energy primed as it agrees pivotal acquisition in Kenya and Tanzania READ - Octant Energy agrees US$10mln financing as it closes in on Kenya and Tanzania assets The Kenyan assets include the block L17/L18 and block 1. Block L17/L18, in which the vendor has a 100% interest, lies in the Lamu coastal basin and both L17 and L18 cover an area of around 1,275 sq km and 3,630 sq km respectively. They are both onshore and in water depths varying from a few meters along the shoreline up to around 500 metres. Meanwhile, Kenya Block 1 is on the western margin of the Mandera-Lugh basin and spans an area of 22,250 sq km. The vendors working interest is 80%. Octant is also pursuing the Tanga Block in Tanzania, in which the vendor has a 74% interest. Details on when the Tanga Block will be closed is not currently available. As reported last month, Octant is arranging a US$10mln financing and entered into a term sheet with Rosseau Asset Management (RAM). The financing will carry 8% interest per year and the first tranche (of US$1mln) will be used to complete the acquisition of the Tanga Block, it had said. Now the second tranche of US$9mln has been completed. RAM can convert the principal at U$0.075 per share at any time up to March 8, 2021. Octant is run by former Black Marlin boss Richard Schmitt, who is already familiar with the assets as they were part of the business he sold to Afren back in 2010. Afren paid US$101mln for Black Marlin in 2010, which perhaps goes some way to show the significant value of these African assets, and the discount Octant is getting. The assets have been the subject of considerable investment since Afren acquired them in 2010, with 3D seismic shot across the acreage. While some data interpretation may be required, to all intents and purposes the acreage is importantly drill ready. As well as the Black Marlin success, Schmitt was formerly president of Africa Oil where he played a key role in building what has become a significant portfolio of assets in the region. Previously, Schmitt, in a statement, has said: I am encouraged to be working with assets I know well from my past experiences. This portfolio that Octant has secured is pivotal in the future development of Kenya and Tanzania as they further movement towards energy security and domestic growth in the countries." Share