VANCOUVER, BC, Nov. 4, 2020 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI",
"Africa Oil" or "the Company") is pleased to announce that Impact
Oil & Gas Limited ("Impact") has entered into two agreements
for exploration areas offshore South
Africa. The Company has a 31.10% shareholding in Impact, a
privately owned exploration company with a strategic focus on large
scale, mid to deep water plays of sufficient materiality to be of
interest to major companies. Impact has an asset base across the
offshore margins of Southern and West
Africa. View PDF Version
Farm-out of Transkei & Algoa Blocks
Impact has entered into an agreement with BG International
Limited, a wholly owned subsidiary of Royal
Dutch Shell plc ("Shell") for the farm-out of a 50% working
interest and operatorship in the Transkei & Algoa exploration
right, offshore South Africa
(Exploration Right reference 12/3/252).
Under the terms of the farm-out agreement, Shell will acquire a
50% working interest in the Transkei & Algoa blocks and
operatorship. Shell has also been granted the option to acquire an
additional 5% working interest should the joint venture elect to
move into the Third Renewal Period, which is expected to be
approximately 2024.
Siraj Ahmed, CEO of Impact Oil
& Gas, commented: "We are delighted to have secured a
farm-out partner of Shell's calibre, highlighting the significant
value potential of our exceptional South African exploration
portfolio. Shell joins the Transkei & Algoa licence 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 programme to build
upon the considerable work already undertaken by Impact and the
previous JV partnership."
Whilst part of the same licence, the Transkei & Algoa blocks
have different geological settings. Algoa is situated in the
South Outeniqua Basin, a short distance east of Block 11B/12B, containing
the Brulpadda gas condensate discovery and where Total has recently
announced a further significant gas condensate discovery, following
the successful drilling of the Luiperd-1X exploration well, which
it is currently testing. The Transkei block is situated north-east
of Algoa in the Natal Trough Basin where Impact has identified
highly material prospectivity associated with several large
submarine fan bodies, which this joint venture will explore with
focused 3D seismic data and then potential exploratory
drilling. Impact and Shell plan to acquire over 6,000km² of
3D seismic data during the first available seismic window following
completion of the transaction. This window is expected to be in the
first quarter of 2022.
Closing of the transaction is subject to customary conditions,
including the approval of the Government of South Africa. The participating interests in
the Transkei & Algoa blocks following completion of the
farm-out by Impact will be as follows: Shell (Operator), 50% and
Impact, 50%.
Impact to farm-in to Area 2
Impact Africa Ltd, has also entered into an agreement with
Silver Wave Energy Pte Ltd ("Silver Wave") for the farm-in of a 90%
working interest and operatorship of Area 2, offshore South Africa (Exploration Right reference
12/3/276).
Under the terms of the farm-out agreement, Impact will acquire a
90% working interest and operatorship in Area 2, offshore
South Africa. Being immediately
east and adjacent to Impact's Transkei & Algoa blocks, Area 2
complements Impact's existing position by extending the entire
length of the ultra-deep-water part of the Transkei margin (please
refer to the exhibit at the bottom of this press release).
Together, the Transkei & Algoa Blocks and Area 2 cover over
124,000 km2 and occupy a very exciting frontier
exploration area, with plays extending across both blocks.
Siraj Ahmed, CEO of Impact Oil
& Gas, commented: "We are delighted to have partnered with
Silver Wave in Area 2; a significant addition to Impact's
portfolio. Following Total's recent successes in the Outeniqua
basin, and the upcoming Venus well in Namibia, this acquisition materially increases
the Company's presence within an exciting exploration region, as it
opens up. The addition of Area 2 to Impact's Transkei &
Algoa and Orange Basin Deep Blocks in South Africa, and Blocks 2912 and 2913B in Namibia, delivers a unique and compelling
Southern African exploration portfolio."
Area 2 lies within the emerging Southern African Aptian deep
water oil and gas play, stretching from northern most Namibia, around Cape Agulhas and the Transkei
margin, to the Durban Basin in the
north-east. This play 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
ultra-deep-water Namibia, where
Impact is a substantial partner. Impact believes that 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.
Closing of the transaction is subject to customary conditions,
including the and the approval of Government of South Africa. The participating interests in
the Area 2 following completion of Impact's farm-in will be as
follows: Impact (Operator), 90% and Silver Wave, 10%.
Keith Hill, Africa Oil's
President and CEO, commented, "We continue to be very pleased with
our portfolio of equity investments, especially with the recent
Luiperd discovery on Block 11B/12B,
South Africa. The entry of Shell
into Impact's Transkei & Algoa licence 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. 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 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."
Exhibit – Africa Oil's Portfolio Exposure in Southern Africa
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in Africa and Guyana. The Company is listed on the Toronto
Stock Exchange and on Nasdaq Stockholm under the symbol
"AOI".
This information is information that Africa Oil Corp. is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact person set out below on November 4, 2020 at 5:30
a.m. ET.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information
(together, "forward looking statements") relate to future events or
the Company's future performance, business prospects or
opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect,
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve
known and unknown risks, ongoing uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.