Canadian oil and gas company Africa Oil Corporation has announced that exploration company Impact Oil and Gas Limited – in which Africa Oil Corp. holds a 31% stake – has entered into two agreements for exploration areas offshore South Africa.
The first agreement with Shell’s subsidiary BG International Limited sees the farm-out of a 50% working and operating interest in the Transkei & Algoa offshore exploration right, with Shell retaining the option to acquire an additional five percent working interest should the joint venture (JV) enter into its Third Renewal Period, expected around 2024.
“We are delighted to have secured a farm-out partner of Shell’s caliber, highlighting the significant value potential of our exceptional South African exploration portfolio,” said Siraj Ahmed, CEO of Impact Oil and Gas. “Shell joins the Transkei & Algoa license at a very exciting time for exploration drilling in South Africa. They bring substantial exploration expertise, with particular understanding of the potential offshore South Africa, and an agreed strategy to accelerate the work program to build upon the considerable work already undertaken by Impact and the previous JV partnership.”
The second agreement with Silver Wave Energy sees the farm-out of a 90% working and operating interest in offshore Area 2, which is located nearby the Transkei & Algoa blocks, thereby extending Impact’s position to the entire ultra-deep-water length of the Trankei margin.
Notably, the frontier exploration play is home to the Brulpadda and Luiperd discoveries in the Outenique Basin, and holds plans for further testing in 2021.
“We continue to be very pleased with our portfolio of equity investments, especially with the recent Luiperd discovery on Block 11B/12B. The entry of Shell into Impact’s Transkei & Algoa license is a confirmation of this strategy, and with the addition of Area 2, we now have an industry-leading acreage position in this exciting new region,” said Keith Hill, Africa Oil’s President and CEO. “All of our portfolio companies – Impact, Africa Energy and Eco Atlantic – are well-financed, and we do not expect them to raise any additional equity in the foreseeable future. We are looking forward to the spud of the Venus exploration well on Block 2913B in Namibia’s Orange Basin in the first half of 2021, which will target one of the largest submarine fans ever tested by the industry.”