London: 02 November 2020
Impact Oil & Gas Limited (“Impact” or the “Company”), a privately-owned, African-focused, exploration company, is pleased to announce that its wholly-owned subsidiary, Impact Africa Ltd, has entered into an agreement with Silver Wave Energy Pte Ltd (“Silver Wave Energy”) 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 compliments Impact’s existing position by extending the entire length of the ultra-deep-water part of the Transkei margin. 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 Energy 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 approval of the 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 Energy, 10%.
Area 2, offshore South Africa
Exploration Right reference 12/3/276 (Gamtoos, Algoa and Transkei Basins), is located offshore eastern South Africa and covers approximately 78,708km². Although water depths extend to approximately 4,500 meters, the prospective areas sit within 3,500 metres. The licence was initially awarded to Silver Wave Energy in 2015.
The full press release can be downloaded below.