The government of South Africa has approved the acquisition of a 75% participating interest in the Tugela Exploration Right by ExxonMobil Exploration and Production South Africa Limited (‘EMEPSAL’) from Impact Africa Limited (‘Impact’). The Tugela Exploration Right covers approximately 11,325 km2 offshore on the east coast of South Africa near the city of Durban.
In October 2012 EMEPSAL and Impact entered into an agreement whereby EMEPSAL would acquire a 75% participating interest in the Tugela South Exploration Right, subject to South African government approval. In addition to the Exploration Right, Impact also holds three technical cooperation permits (TCP’s) pertaining to a number of designated blocks on the east coast of South Africa totalling approximately 65,000 km2. Impact has applied for exploration rights relating to these TCPs.
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.
“We are very pleased to have passed the first milestone in terms of government approvals and look forward to a long and successful relationship with ExxonMobil in South Africa.”
Mike Doherty, Executive Chairman of Impact Oil & Gas Limited.