Red Rock Resources has entered into an option agreement with Elephant Oil Limited, an oil and gas exploration company focused on West Africa.
The Option if exercised requires Red Rock to subscribe for 1,086,956 new ordinary shares in Elephant, at a price per share of 25.3 pence, for an aggregate consideration of £275,000. Further the Option if executed includes the right to invest an additional £412,500 in to Elephant within a six month period, also at 25.3 pence per share. The Option is exercisable within seven days, unless extended by Elephant. A further announcement will be made at that time.
Elephant is a privately held independent oil exploration company holding a 100% interest in the production-sharing contract on Block B, onshore Benin, on the prolific West Africa Transform Margin. The block covers 4,500 km2, or approximately two-thirds of the coastal basin, and is one of only two onshore blocks to have been made available by the government of Benin.