SacOil (LON:SAC) told investors it had grown its asset base in Africa - with the award of an onshore prospecting licence in Malawi.
The firm has gained 100% equity interest in the Block 1 licence and will be the operator.
The 12,265 sq km area lies in the north west part of the country bordering Tanzania to the north and Zambia to the west and is the second largest petroleum exploration licence outlined in Malawi.
SacOil notes that it lies on trend with the East African rift system - a proven exploration province with prolific oil discoveries in Sudan, Chad, Kenya and Uganda. It is anticipated that the same Tertiary rift system will be present in Malawi, the fim said.
Chief exceutive Robin Vela said the award represented the company's commitment to grow its asset base on the African continent.
"This is in line with SacOil's strategy of building and developing a uniquely African portfolio. In addition, it gives effect to our drive to unlock under-explored regions in Africa," he said.
The terms of the licence are divided into an initial four year period, for whcih SacOil must pay US$2mln, followed by two subsequent three-year renewal periods.
"During the initial four year period it is envisaged that desktop studies and the acquisition of gravity and magnetic data will take place in order to evaluate the petroleum potential of the block."