Helios Investment Partners has agreed to invest $100m for a 12.4% stake in Africa Oil Corp., a Canadian oil and gas company with assets in East Africa.

Africa Oil Corp. has entered into an investment agreement with Stampede Natural Resources, an entity owned by a fund advised by Helios, to sell on a non-brokered private placement basis, 52,623,377 of its common shares at a price of CAD $2.31 ($1.92).

Upon completing, Stampede would own approximately 12.37% of the issued and outstanding common shares of the Company.

Andy Bartlett, Oil and Gas Partner at Helios, said: “Helios is delighted to invest in Africa Oil Corp, a company we consider to have one of the best management teams in the E [exploration] and P[production] sector. This is a flagship transaction for the firm to help develop Kenya's nascent petroleum sector.”

“The capital is being deployed to further this exciting project which we consider to be world class in terms of potential. It has all the right characteristics for the sector in a lower oil price environment,” he said.

Africa Oil Corp. is listed on the Toronto Stock Exchange and on Nasdaq Stockholm with assets in Kenya and Ethiopia, as well as Puntland (Somalia) through its equity interest in Africa Energy Corp.

Helios said it will nominate one non-executive director to the board of Africa Oil Corp.

The investment will help to fund the Company’s ongoing appraisal and development work program in East Africa.

Keith Hill, President and CEO of Africa Oil, said: “We are very pleased to have been able to attract a large investor with the credentials and reputation of Helios into the Company, which we consider as a strong endorsement of the project, despite the current oil price downturn.”

“This relationship will not only be of short term benefit by strengthening our balance sheet and allowing us to continue with drilling operations and pre-development work, but also has the potential to provide a core investor as the Lokichar Basin development project progresses,” he said.

The closing of the financing is subject to regulatory approval and certain other customary conditions.

The Company expects the closing to occur on or around May 29, 2015.

The common shares issued in the financing will be subject to resale restrictions under Canadian securities laws for a period of four months plus one day from the date of the closing of the financing.

The securities offered have not been and will not be registered under the US Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an exemption from such registration requirements.

Helios Investment Partners is an Africa-focused investment firm with over $3bn assets under management.

Helios has completed investments in countries across the African continent, including Nigeria, Ghana, Kenya, Tanzania, Angola, South Africa and Morocco.

Babatunde Soyoye, founding Partner of Helios, said: “This deal is a perfect example of Helios's differentiated strategy. It is our fourth oil and gas platform company making us the most active private equity group in African oil and gas.”

“It combines both our oil and gas industry expertise, and our deep African knowledge. Kenya is one of the fastest growing economies in Africa and Helios is one of the largest foreign investors in the country,” he said.