LONDON (Alliance News) - Shares in Paternoster Resources PLC were given a boost in early trade on Wednesday after the company said it would make an investment in West Africa-focused oil explorer Elephant Oil Ltd, giving it exposure to the West Africa Transform Margin.
Paternoster shares were up 12% to 0.29 pence in early trade, putting it among the top five risers on the AIM All-Share index.
The company said it has agreed to subscribe for 1.2 million shares in Elephant, representing 5.5% of Elephant's enlarged share capital. Paternoster is buying the shares for 25.3 pence each, making the total investment worth GBP300,000.
Elephant holds a 100% interest in a production-sharing contract on Block B, onshore Benin, on the West Africa Transform Margin. A number of major oil companies now have a presence in the area, including Tullow Oil PLC, Royal Dutch Shell PLC and Afren PLC.
Elephant has already acquired a high-resolution aero gravity gradiometry survey for Block B, with a number of prospects identified in the area. Preparations are now underway for a new 2D seismic acquisition programme which will be used to select the optimal location for the first exploration wells onshore in Benin.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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