Africa Oil: New acquisition

Leading EastAfrica player Africa Oil Corporation has signed a letter of intent to buy Lion Energy Corporation, its partner in Kenya and the breakaway Somali republic of Puntland. The companies will now negotiate a full agreement for Africa Oil to acquire Lion through a scheme of arrangement. Lion isAfrica Oil’s last remaining co-venturer in Kenya Block 9, following the withdrawal of the block’s Asian partners, and has 10% in Block 10BB, alongsideAfrica Oil and Tullow.It also has 15% in the Dharoor Valley and Nugaal Valley licences in Puntland.