Angkor Resources Boosts Stake in Cambodian Oil and Gas Block to 75%
Angkor Resources Corp. increases its ownership in the Block VIII oil and gas concession in Cambodia from 20% to 75% through a new agreement, assuming drilling costs and making a USD2 million payment.
Angkor Resources Corp. (TSXV: ANK) announced Monday that its energy subsidiary, EnerCam Exploration Ltd., has entered into an amended joint strategic alliance agreement to increase its interest in the Block VIII oil and gas concession in Cambodia from 20% to 75%. The deal underscores the company's commitment to advancing exploration in Southeast Asia's emerging energy sector.
Under the terms of the agreement with 358140 Alberta Ltd., Angkor will fund the drilling program and make a payment of USD2 million to 358 by June 30, 2026. The payment can be made in cash or through the issuance of common shares priced at the 30-day volume-weighted average trading price prior to the payment date, subject to TSX approval. Following the drilling program, the interests will convert to a working interest, with 358 retaining a 25% stake and obligated to contribute to 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. He noted that 358 took on the greatest early-stage risk, enabling EnerCam to advance the license and identify drill targets.
Block VIII spans approximately 4,095 square kilometers in southwest Cambodia. 358's financial contributions, exceeding CAD 3.6 million, have funded final licensing, an initial environmental impact assessment, the addition of 220 square kilometers in the northeast segment, a 350-kilometer 2-D seismic assessment, and the determination of four drill targets on subbasins within Block VIII. Angkor previously identified these targets in a press release.
The concession is held in Angkor's Cambodian subsidiary EnerCam Resources Co. Ltd. and administered by EnerCam Exploration Ltd. of Canada. The agreement is subject to TSX Venture Exchange approval.
This increased stake positions Angkor to benefit significantly from any successful drilling outcomes. Cambodia has no proven oil reserves, and Block VIII represents one of the country's few onshore exploration opportunities under a production sharing contract. The company plans to drill Cambodia's first privately financed onshore exploratory wells, which could unlock substantial value if commercially viable hydrocarbons are discovered.
Angkor also holds mineral exploration licenses in Cambodia for copper and gold, but its energy focus is now sharpened with this larger interest. The transaction reduces the risk for 358 while giving Angkor greater control over the project's direction.
Industry observers view this as a strategic move to consolidate ownership ahead of drilling, which carries high costs but potentially high rewards. With drill targets already identified, the company is advancing toward a significant milestone in Cambodia's energy landscape.