Africa Oil announced Impact Oil & Gas entered into two agreements for exploration areas offshore South Africa. The company has a 31.10% shareholding in Impact, a privately owned exploration company.
Impact entered into an agreement with BG International, a Shell subsidiary, for the farm-out of a 50% working interest and operatorship in the Transkei and Algoa exploration rights. Shell was also granted the option to acquire an additional 5% working interest should the joint venture (JV) elect to move into the third renewal period, expected in 2024.
Algoa is located in the South Outeniqua Basin, east of Block 11B/12B, containing the Brulpadda gas condensate discovery and where Total recently discovered gas condensate. The Transkei block is northeast of Algoa in the Natal Trough Basin where Impact has identified highly material prospectivity associated with several large submarine fan bodies, which the JV will explore with 3D seismic data and then potential exploratory drilling. Impact and Shell plan to acquire over 6,000 km² of 3D seismic data during the first available seismic window following completion of the transaction. This window is expected to be in the Q1 2022.
After the closing of the deal, Shell will hold a 50% interest as the operator and Impact will hold 50%.
Impact also entered into an agreement with Silver Wave Energy for the farm-in of a 90% working interest and operatorship of Area 2, offshore South Africa.
East and adjacent to Impact’s Transkei and Algoa blocks, Area 2 complements Impact’s existing position by extending the entire length of the ultradeepwater part of the Transkei margin. Together, the Transkei and Algoa Blocks and Area 2 cover over 124,000 km2.
Area 2 has been opened by the Brulpadda and Luiperd discoveries in the Outeniqua Basin and will be further tested during 2021 by the well on the giant Venus prospect in ultradeepwater Namibia, where Impact is a partner. Impact believes there is good evidence for this Southern African Aptian play to have a common world-class Lower Cretaceous source rock, similar excellent-quality Apto-Albian reservoir sands, and a geological setting suitable for the formation of large stratigraphic traps.
Following completion of the farm-in, Impact will hold 90% interest and serve as the operator; Silver Wave will hold 10%.