Gasol Upstream Limited, a subsidiary of Gasol Plc has agreed to buy 31.7 percent of Afrique Energie Corp (AEC) in a $1 million investment.
It has also agreed to issue another $1million loan to AEC. The loan will mature in November at an interest rate of 20 percent per annum in exchange for a supplementary 20 million shares, taking its total number of shares to 41.9 million equalling a 47 percent equity in the company.
Gasol’s shareholding gives the company a representation right on the Afrique Energie Corp’s board.
“We have been impressed with the management team at AEC and we look forward to working with them to source upstream gas assets,” said Gasol Chief Operating Officer, Alan Buxton.
The Canadian-registered development company (AEC), which is focused on proven African energy plays is expected to use the fund to grow its portfolio in Africa.
The partnership between both entities will see them collaborate on developing discovered gas reserves in West Africa.