London: 18 July 2022
Impact Oil & Gas Limited (“Impact” or the “Company”)(“Impact” or the “Company“), a privately-owned, Africa-focused, exploration company, is pleased to announce an Open Offer to existing shareholders to subscribe for new Ordinary shares in the Company, to raise up to $60 million. The capital raised shall be used towards funding Impact’s participating share (held through its wholly owned subsidiary, Impact Oil and Gas Namibia (PTY) Ltd) of the Venus appraisal programme, in Blocks 2913B, offshore Namibia.
Highlights:
Siraj Ahmed, CEO of Impact Oil & Gas, commented:
“We are excited to be preparing for the appraisal of the world class light oil and associated gas discovery in Venus-1X, expected to commence only seven months after the initial discovery was announced. This is remarkable progress that reflects the commitment of the joint venture to accelerate the de-risking and commercialisation of the Venus discovery. We are grateful to our shareholders, who have steadfastly supported Impact through a difficult period in the industry, and are grateful for their continued support in this capital raise.”
Background
During 2021, Impact Oil & Gas Limited (“Impact” or the “Company”) continued to progress its exploration activities in its portfolio of offshore licences to the south and west of Africa. Following the spudding of Venus-1X in Block 2913B, offshore Namibia in November 2021, Impact’s Venus prospect, was successfully drilled, and in February 2022 the discovery of a world class light oil and associated gas field, exceeding Impact’s pre-drill expectations, was announced. The Venus-1X discovery well was drilled by TotalEnergies on behalf of the joint venture group comprising TotalEnergies (40%), QatarEnergy (30%), Impact (20%) and state owned NAMCOR (10%). The Venus discovery sits in the Orange Basin, approximately 290 kilometres off the coast of Namibia, in the deep offshore. The well was drilled to a total depth of 6,296 metres, by the Maersk Voyager drillship, and encountered a high quality, light oil-bearing sandstone reservoir of Lower Cretaceous age, with 84 metres of net oil pay.
Later this year, the joint venture will return with a drillship to drill and test one appraisal well and re-enter the Venus-1X exploration well to run a test. The joint venture also expects to acquire additional seismic in the adjacent Block 2912, which contains the western extension of the Venus field. The anticipated work programme, if successful, will enable the joint venture to press ahead with an early development programme and to better understand the scale of the Venus field and the extent to which the Venus accumulation extends west, into the adjacent Block 2912.
Open Offer
The Company has made an open offer to existing shareholders to raise up to US$60 million through the issue of Ordinary Shares (the “Open Offer”).
Each Qualifying Shareholder is being given the opportunity to subscribe for Open Offer Shares under the Open Offer at the Issue Price pro rata to its existing shareholding of Ordinary Shares on the Record Date (12 July 2022) relative to the total issued Ordinary Shares on the Record Date, on the following basis (being a Qualifying Shareholder’s “Basic Entitlement” of 4 Open Offer Shares for every 33 Existing Ordinary Shares held).
Additional funding
The expected proceeds of up to US$60 million from the Open Offer, together with existing cash reserves, represent the majority of the Company’s anticipated funding requirement for the next 12 months. These funds should provide sufficient capital to secure the Company’s funding requirements for the majority of the appraisal programme costs.
Reasons for the Open Offer
Following the light oil and associated gas discovery in Block 2913B, Impact is now preparing to fund its share of an appraisal programme on this block and continue with its exploration activity on Blocks 2913B and neighbouring Block 2912, including the acquisition of 3D seismic.
Structure of the Open Offer
The Open Offer provides the Company with the opportunity to raise the funding that it needs in the short term in a manner that enables all Qualifying Shareholders to participate should they so wish. The Major Shareholders, representing in aggregate 93.62% of the voting rights in the Company, have committed to approve the Resolutions to implement the Open Offer and take up, or procure the take up of, their respective Basic Entitlements under the Open Offer, which provides the Company with confidence as to a minimum amount of funds expected to be raised through the Open Offer.
Enquiries:
Impact Oil and Gas +44 1483 750 588
Siraj Ahmed, CEO
PR & Media: +44 20 3757 4980
Georgia Edmonds, James Crothers, Hugo Liddy
The full press release can be downloaded below.