03-08-09 Canadian oil explorer Africa Oil Corp has taken over Turkana Energy, as the search for petroleum deposits in Kenya gains momentum.
The takeover, which has been approved by Kenya's Ministry of Energy, will see Africa Oil acquire all exploration rights to the so-called Block 10BB in north western Kenya. The block has a high potential for oil.

It is in the Kenyan arm of the Rift Valley, which is similar to the Ugandan area where companies like Heritage Oil and Tullow Oil have struck rich deposits. In the takeover deal, Turkana Energy's shareholders will get 7.5 mm shares in Africa Oil, which in turn will soak up the former's entire debts.
"In addition, Turkana's convertible loans of up to C$ 1 mm (about $ 875,000) will be exchanged into common shares of Africa Oil at C$ 1.27 (about $ 1) per share," Africa Oil said.

Kenya's search for oil has in the past two years acquired new urgency following Uganda's huge find in the Albertine basin. If Kenya does not strike deposits of its own, analysts say, the economic balance of the region, which in the past has favoured it, could change dramatically. Tanzania and Rwanda have also struck varying quantities of fossil fuels, including natural gas.
Soon after the Uganda oil discoveries were announced, the Kenyan government unveiled a series of production sharing contracts with various oil search firms, including Turkana Energy, Origin Energy, Lion Petroleum and China National Offshore Oil Corporation.