Africa Oil Corp. mentioned Monday it has elevated its stake in Block 3B/4B on the South African facet of the Orange Basin to 18 p.c from 17 p.c after finishing a transaction with Eco (Atlantic) Oil & Fuel Ltd.
Toronto, Canada-based Eco transferred a one p.c stake to Africa Oil in trade for the latter giving up its fairness rights in Eco.
Africa Oil, additionally a Canadian firm, canceled over 54.94 million frequent shares and greater than 4.86 million warrants it had held in Eco. The canceled shares have been value about CAD 11.5 million ($7.99 million), Eco mentioned in a separate assertion Monday.
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The transaction, introduced July 29, 2024, was between Eco subsidiary Azinam Ltd. and Africa Oil subsidiary Africa Oil SA Corp. (AOSAC).
Eco retains a 5.25 p.c curiosity in Block 3B/4B, an undeveloped space in South Africa’s portion of the Orange Basin, shaped by the namesake river that additionally crosses Namibia, Botswana and Lesotho.
“This transaction is one other step in delivering the technique of accelerating direct curiosity in Africa Oil’s key belongings, together with our alternative set within the Orange Basin, a area with excessive ranges of business curiosity and exercise”, Africa Oil chief government Roger Tucker mentioned Monday.
Gil Holzman, co-founder and chief government of Eco Atlantic, mentioned in Eco’s personal press launch Monday, “The transaction not solely strengthens Eco’s steadiness sheet on a per-share foundation but additionally creates important shareholder worth via a fabric discount within the Firm’s share rely”.
As a part of the transaction, Africa Oil’s consultant to Eco’s board of administrators, Oliver Quinn, has stepped down. Eco has now appointed a brand new non-executive director.
Africa Oil raised its stake after two world power giants agreed to farm in.
On August 28, 2024, Africa Oil mentioned it had accomplished a cope with TotalEnergies SE transferring operatorship of Block 3B/4B to the French power large for $10 million. The lease is adjoining to TotalEnergies’ operated DWOB block, additionally on the South African facet of the Orange Basin.
The settlement, which additionally concerned 3B/4B co-venturer Ricocure (Pty.) Ltd., farmed out a mixed 57 p.c to TotalEnergies and its DWOB companion QatarEnergy. TotalEnergies obtained 33 p.c and QatarEnergy 24 p.c. Earlier majority proprietor Ricocure, a neighborhood participant, now owns 19.75 p.c, down from 53.75 p.c.
On September 16, 2024, South Africa’s Mineral Sources and Power Division granted an environmental allow for an exploration marketing campaign involving as much as 5 exploration wells.
Block 3B/4B spans an space of 17,581 sq. kilometers (6,788.06 sq. miles), with water depths starting from 300 meters (984.25 toes) to 2,500 meters. “There may be roughly 14,000 km of 2D seismic and 10,800 km2 of 3D seismic over Block 3B/4B, figuring out a big alternative set of exploration prospects, with nearly all of the prospects mendacity in roughly 1,500m of water”, Africa Oil says.
The block is “on pattern with plenty of oil discoveries together with Venus”, it says.
The Venus 1X oil discovery on the Namibian facet of the Oranges Basin was introduced February 24, 2022. Drilling encountered about 84 meters of internet oil pay “in a good high quality Decrease Cretaceous reservoir”, TotalEnergies then, calling the invention “important”.
To contact the writer, e-mail jov.onsat@rigzone.com
