UPDATE 1-Africa Oil says to place new shares, take impairment charges

Thu Feb 12, 2015 12:37pm EST
 
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STOCKHOLM Feb 12 (Reuters) - Africa Oil said on Thursday it planned to raise $100 million in a private placement and that it would take impairment charges related to assets in Somalia and Ethiopia.

It said the private placement would be of new common shares and that Dundee Securities Europe LLP and Pareto Securities would act as joint bookrunners.

The company said it would record a non-cash impairment charge related to its assets in Puntland, Somalia, in the fourth quarter of 2014 and would refrain from any operational activity until the political situation improved.

Africa Oil also said it had notified its partners it would withdraw from its 10 percent working interest in the Adigala Block in Ethiopia and that it would take a non-cash impairment charge related to costs there as well.

On Sept. 30, intangible exploration assets related to the Puntland properties amounted to $91 million and $6 million related to the Adigala Block.

The company said the net proceeds from the private placement would be used primarily to fund ongoing appraisal and pre-development activities in the South Lokichar Basin in Kenya. (Reporting by Daniel Dickson; Editing by Elaine Hardcastle and Jane Merriman)