Labat Buys Share in Namibian Offshore Licence

Labat,a South Africa-based company, has signed an agreement with Amicitia Holdings Limited (“the Vendor”) on 20 June 2013, in terms of which it will acquire the entire issued share capital of Palatina Petroleum Limited for an acquisition price of US$14 million.

The Acquisition, which is subject to the satisfactory completion of a due diligence investigation and the fulfilment of other conditions precedent, will provide Labat with an 85% participating interest in a licence issued by the Government of Namibia to Palatina, for the right to engage in the exploration and development of oil and gas in respect of leases numbered 1909, 2009 and 2414 in off-shore Namibia.

“Shareholders are advised that Labat is still in negotiations to acquire two further leases from the Vendor and is in preliminary discussions aimed at acquiring a further five leases from two other parties. Discussions are also taking place with another party with a view to acquiring substantial South African proven gas reserves. Shareholders are accordingly advised to continue to exercise caution when dealing in the company’s securities until full and further announcements are made,” said the company in a press release.