Exploration Right 12/3/252, Algoa -Transkei, is located offshore eastern South Africa and covers approximately 45,838km2 in water depths up to 3,000 metres.
The Licence was initially awarded to Impact as a Technical Cooperation Permit in 2012, following an application for an Exploration Right, which was granted in 2014.
Under the terms of a farm-out agreement between ExxonMobil Exploration and Production South Africa Limited (ExxonMobil) and Impact in 2012, ExxonMobil applied for a 75% working interest and operatorship of the licence and collectively gathered extensive new data, significantly progressing the technical understanding of the exploration potential of the ER. Equinor completed a transaction with ExxonMobil in 2017, taking a 35% interest in the ER. ExxonMobil retained operatorship and a 40% interest in the licence, while Impact held 25%. In October 2020 ExxonMobil Exploration and Equinor elected to relinquish their respective working interests.
In November 2020 Shell acquired a 50% working interest 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.
Whilst part of the same licence, the Transkei & Algoa blocks have different geological settings. The Algoa block 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 the 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.
Royal Dutch Shell plc 50% (Operator)
Impact Oil and Gas Ltd 50%