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Anglo African Oil & Gas said it had agreed to a sale plan with Zenith Energy over its remaining stake in a Congolese oil prospect.
Anglo African Oil & Gas (AAOG) had previously agreed to sell 80% of its interest in the Tilapia prospect to Zenith.
It had now entered into a put and call option that would require it to sell the remaining 20% stake to Zenith.
The option, however, could only be exercised by Zenith on 16 January 2021 if production at Tilapia had never exceeded an average of at least 2,000 barrels of oil equivalent per day -- for any consecutive 30-day period prior to 15 January 2021.
'We are very pleased to have agreed these terms with Zenith which protects the upside value for shareholders in AAOG in the event that Zenith succeed in increasing production to 4000 boepd,' chairman Sarah Cope said.
'The board believes that this will give the Company's shareholders comfort in AAOG's ability to liquidate its holding in a successful AAOG Congo following the investment that Zenith has committed to make into Tilapia.'
At 2:19pm: (LON:AAOG) Anglo African Oil Gas Plc Ord 5p share price was 0p at 0.43p