Africa Oilfield Logistics Ltd acquires 49% interest in Ardan Risk & Support Services
Africa Oilfield Logistics Ltd, an investment company established to invest in the oil and gas logistics support industry in sub-Saharan Africa, is pleased to announce the acquisition of a 49% interest in Ardan Risk & Support Services (‘Ardan’, the ‘Acquisition’), a cash generative oilfields and logistics business with operations currently in Kenya, Ethiopia and Mauritius. In addition to the Acquisition, the Company has been granted exclusivity for a period of 180 days with a view to entering into an agreement to acquire the remaining 51% interest in Ardan.
· Acquisition of Ardan will represent maiden transaction for Africa Oilfield in accordance with its investment strategy to "acquire or invest in businesses associated with the oilfield services and logistics support industry in respect of oil and gas exploration"
· Consideration of US$4 million to be satisfied by the allotment of 32,979,355 new ordinary shares in the Company at a price of 8p per share (the ‘Consideration Shares’)
· Founded in 2008, Ardan has established itself as a cost-effective, quality provider of turn-key logistics and support services solutions to international corporate clients operating primarily in the oil & gas and mining sectors in East Africa, achieving consistent growth since inception
· Ardan is ideally positioned to capitalise on projected rapid growth in:
o East Africa, which includes two of the world’s leading emerging resource development areas:
· the oil exploration sector in the East African Rift Valley
· the East African (including Mozambique) offshore gas exploration sector
o Additional markets, particularly in Madagascar, West and North Africa
· Ardan has developed and recruited a highly experienced operational team with particular emphasis on delivering logistical solutions for the oil and gas industry in Africa
· Africa Oilfield to provide loan funding to drive growth through increasing Ardan’s market share and expansion into new jurisdictions
Africa Oilfield Director Andrew Groves said, "Ardan represents a compelling investment opportunity for Africa Oilfield, combining a strong industry reputation, a secure client list of oil and gas majors, and significant growth in revenue over its five years of operation.
"I am confident that the considerable growth that the Ardan team have achieved over recent years can be further enhanced and to facilitate this, Africa Oilfield has committed to provide funding to enable the Ardan team to accelerate its expansion into new services and geographic regions, and attract further "blue chip" oil and gas clients to Ardan’s roster.
"With an aggressive expansion programme underway, a high calibre management team in place and top quality projects underway and in the pipeline, Ardan expects to continue its growth trajectory over the next few years.
"Ardan is a robust business with huge scope for growth, and with the investment, guidance and network of Africa Oilfield, I am confident that we are ideally positioned to assist Ardan in its expansion towards becoming the oilfield services and logistics company of choice across the region."