Zambia-based oil and gas exploration company Mafula Energy has attracted $60,000 of investment from London-based investment company Hot Rocks Investments.
Mafula is currently focused on establishing a portfolio of oil and gas exploration assets in Zambia. Nearby countries including Angola, Uganda, DRC and Tanzania have all made significant oil discoveries—thought to be due to their position within the oil-rich East Africa Rift System, from which Zambia could also benefit.
The East Africa Rift System extends from Jordan through eastern Africa all the way to Mozambique. The system is around 6,400 kilometres long and averages a width of between 48 to 64 kilometres.
Mafula is currently engaging consultants to review its recently acquired geological data, which includes seismic, gravity and aeromagnetic surveys.
Commenting on the announcement, Gavin Burnell, non-executive director of Hot Rocks, said: "We are delighted to have reached agreement with the board of Mafula and to have made our initial investment in to the company. We are very encouraged at the prospect of Mafula discovering significant oil and gas deposits in Zambia and are keen to assist Mafula in achieving their goals of a stock market listing in the near term.
“We intend to work closely with Mafula's management to ensure that their flotation valuation truly reflects the quality of their assets and potential at that time."
The investment in Mafula is the second for Hot Rocks. The company will gain six per cent of Mafula’s share capital in exchange for its $60,000 investment, and has also agreed to invest a further $40,000 for a further four per cent, subject to a number of conditions being fulfilled over the next six weeks.
Hot Rocks will also be granted warrants to acquire three per cent of Mafula’s equity upon its eventual flotation.
