Petro Viking Energy Inc. entered into a letter of intent with Grisham Assets Corp. to acquire the issued and outstanding shares in the capital of Grisham.

Petro will issue to the vendors about seven million of its common shares at a deemed issue price of $0.20 and seven million of its warrants. The company will make a pre-closing cash payment of $100,000 and in addition make a closing cash payment of $5.9 million. Petro will acquire 100% of the issued and outstanding Grisham shares upon closing of the acquisition.

Grisham’s principal asset is an agreement to acquire an 80% interest in blocks 1810, 1710, and 2913B offshore Namibia, Africa, covering an area of more than 20,000 sq km. The Ministry of Mines and Energy of the Republic of Namibia issued a petroleum exploration license on Block 1710 and licenses are pending on blocks 1810 and 2913B, which are expected to be granted prior to closing. The remaining 20% is a carried interest held by NAMCOR, the Namibian government, and the Namibian Black Economic Empowerment Group.

Blocks 1710 and 1810 are situated in the Namibe Basin off the Northern coast of Namibia. The two separate exploration blocks have an area of about 17,000 sq km and are situated directly west of blocks 1811 and 1711, which have recently been the focal point of a tremendous amount of activity. EnerGulf Resources recently announced a prospective oil resources report for four prospects and nine leads on Block 1711 offshore Namibia, including an estimated 3,166 million barrels of potentially recoverable oil.

Block 2913B covers an area of about 5,000 sq km situated directly southwest of the proven Kudu gas field in the Orange Basin, offshore Namibia. The region of the basin is considered strategically important, being located in close proximity to South Africa's energy market and power shortages.