Impact Africa Limited (“Impact”), a wholly-owned subsidiary of Impact Oil & Gas Limited, entered into an agreement with ExxonMobil Exploration and Production South Africa Limited (“EMEPSAL”) whereby EMEPSAL will obtain a 75% participating interest in, and become the operator of the Tugela South Exploration Right (Blocks 2931C, 2931D, 2932C and 2932A, Zululand Basin) currently held by Impact offshore Durban on the east coast of South Africa. This exploration right covers approximately 11,000 km2 and is currently held 100% by Impact. The transaction with EMEPSAL is subject to South African government approval.
Impact also holds three technical cooperation permits (TCP’s) pertaining to a number of designated blocks on the east coast of South Africa totaling approximately 65,000 km2. Impact has applied for exploration rights relating to its Tugela North and West Bredasdorp TCPs and will apply for an exploration right relating to its Transkei/Algoa TCP. Under the agreement with EMEPSAL, EMEPSAL will also obtain 75% participating interests in these exploration rights. The granting of the exploration rights and EMEPSAL’s participating interest in them is subject to South African government approval which will be sought on a license by license basis. The commercial terms of the transaction with EMEPSAL are confidential.
Mike Doherty, Executive Chairman of Impact Oil & Gas comments:
“we are delighted to have reached this milestone agreement with ExxonMobil and look forward to a long and successful exploration programme on our acreage in South Africa. ExxonMobil’s participation confirms our belief in the potential of the area and they bring a huge amount of knowledge and expertise to the table.”