Canadian Overseas Petroleum (COPL) has formed a joint venture (JV) partnership with Shoreline Energy International to acquire upstream oil and gas exploration, development and producing assets in sub-Saharan Africa.
A special purpose vehicle, Shoreline CanOverseas Petroleum Development Corporation (ShoreCan), will own the assets acquired by the JV.
COPL and Shoreline will each have a 50% stake in ShoreCan, which has been registered in Bermuda.
The JV is acquiring a portfolio of exploration and development assets in sub-Saharan Africa.
ShoreCan has already acquired positions in Tanzania and Namibia, and will identify assets in Nigeria, Ghana, and Mozambique.
The partnership has agreed to buy a 60% working interest in two offshore blocks in Tanzania.
The 5,056km² Latham and 4,298km² Kimbiji licence areas extend from the shore to offshore depths between 500m and 1,000m.
ShoreCan will assume operatorship of the blocks after exercising the option and approval from the Tanzanian authorities.
The JV has acquired an 80% stake in three blocks offshore Namibia. The blocks, 1708, 1808, and 1709, are located north of the Walvis ridge on the Namibian / Angolan border.
COPL president and CEO Arthur Millholland said: "The JV with Shoreline and formation of ShoreCan allows COPL to progress its stated strategy, offering exposure to a greater spread of highly value accretive assets and opportunities, while minimising risk and capital requirements for shareholders.
"The acquisition of the initial assets in Tanzania and Namibia by ShoreCan is the first of a number of opportunities we are currently pursuing as we build a balanced portfolio."