London, 29 October 2015, Impact Oil and Gas (“Impact”), the African-focused pure exploration company, is pleased to announce that Statoil South Africa B.V. (“Statoil”) has completed a farm-in transaction with ExxonMobil Exploration and Production South Africa Limited (“ExxonMobil”), acquiring a 35% interest in the ER 12/3/154 (“Tugela South”) Exploration Right.
The Tugela South Exploration Right covers an area of approximately 9,054km2 and is located offshore eastern South Africa in water depths up to 1800m. The Exploration Right will enter into its second period later this year during which the government agreed work programme comprises the acquisition of 1000km2 of 3D seismic and other geology and geophysics studies.
Impact acquired Tugela South in 2011 and subsequently shot two 2D seismic campaigns in 2011 and 2012, identifying a number of prospective leads and prospects in the acreage. In late 2012, ExxonMobil obtained a 75% interest in, and subsequently became Operator of, the Tugela South Exploration Right. The deal negotiated between ExxonMobil and Statoil does not alter the commercial arrangements between ExxonMobil and Impact that were agreed in 2012.
The participating interests in the Tugela South Exploration Right are now as follows: ExxonMobil, Operator (40%); Statoil (35%) and Impact (25%). Impact’s interest is held through its wholly-owned subsidiary, Impact Africa Limited.
Mike Doherty, Executive Chairman of Impact Oil & Gas said:
“We are delighted to welcome a partner of Statoil’s calibre to Tugela South and are excited to be working alongside them and ExxonMobil to further explore this promising exploration permit.
“Today’s news is an important milestone for Impact with the creation of a strong joint venture with well-financed and experienced partners and is a further endorsement of the significant potential that exists in our offshore acreage in South Africa. We look forward to working with Statoil and ExxonMobil, in partnership with the Government, to deliver sustainable value to all stakeholders in a safe and environmentally responsible manner.”