Angkor Resources Corp. (TSXV: ANK) announced Monday that its energy subsidiary, EnerCam Exploration Ltd., has entered into an amended agreement to increase its ownership interest in the Block VIII oil and gas concession in Cambodia from 20% to 75%. The deal, formalized through an Amended and Restated Joint Strategic Alliance Agreement with 358140 Alberta Ltd. ("358"), positions Angkor as the majority stakeholder in the 4,095-square-kilometre onshore license.
Under the terms of the agreement, Angkor will assume responsibility for funding the drilling program on Block VIII and make a payment of USD 2 million to 358 by June 30, 2026. Alternatively, Angkor has the option to issue common shares to 358 for the payment, with the share price based on the 30-day volume-weighted average trading price prior to the payment date, subject to TSX Venture Exchange approval. Upon completion of the drilling program, the Block VIII interests will convert to a working interest, and 358 will be required to contribute its 25% share of development costs.
"This is a positive deal for both companies but especially benefits EnerCam / Angkor and its shareholders by increasing our interest substantially to 75%," said Mike Weeks, President of EnerCam. "With funding from 358 at the very early high-risk stages, 358 took on the greatest risk to our benefit; 358 made it possible for EnerCam/Angkor to advance the license, and now we have drill targets and hold a 75% interest as we move towards drilling. 358 keeps its involvement with a working interest and we have the option to convert 358’s ownership investment into shares of Angkor."
358's financial contributions to date exceed CAD 3.6 million, which enabled EnerCam to complete several key milestones: final licensing costs to initiate exploration, an Initial Environmental Impact Assessment, the addition and permitting of an additional 220 square kilometres in the northeast segment of the original license, a 350-kilometre 2-D seismic assessment of the concession, and the determination of four drill targets on subbasins within Block VIII (as detailed in a previous press release: Angkor Resources’ Subsidiary Identifies Drill Targets on Block VIII Oil & Gas, Cambodia).
The Block VIII concession is held in Angkor's Cambodian subsidiary EnerCam Resources Co. Ltd. and is administered by Angkor’s wholly owned EnerCam Exploration Ltd. of Canada. The terms of the agreement are subject to approval of the TSX Venture Exchange.
For business leaders and the energy industry, this move underscores the growing interest in Southeast Asian oil and gas exploration, particularly in Cambodia, which is seeking to establish itself as a nation with its own hydrocarbon resources. By increasing its stake to 75%, Angkor gains significant control over the project's future, including drilling decisions and potential revenue from any discoveries. The company plans to drill Cambodia’s first privately financed onshore exploratory oil and gas wells under a Production Sharing Contract, following completion of an additional Environmental Impact Assessment on the drilling target areas.
Angkor Resources is a leading resource explorer and developer in Cambodia, also holding two mineral exploration licenses for copper and gold. The company's energy subsidiary is actively advancing oil and gas exploration onshore to prove Cambodia's oil and gas resources.
