London, 10 October 2017, Impact Oil and Gas Ltd (“Impact”), the African-focused pure exploration company, is pleased to announce that it has signed (through its wholly owned subsidiaries) a farm-out agreement with Total E&P Namibia B.V. owned by Total S.A. (“Total”), whereby Total will acquire 70% of Impact’s interests in Block 2913B, offshore Namibia (“Block 2913B”), and 77.78% of Impact’s interests in Orange Basin Deep TCP, South Africa, once an Exploration Right is granted over the area (“Orange Basin TCP”).
Impact is now partnered by four oil majors across all but one of the regions in which the Company operates. Below is a summary of the Company’s previous farm-outs:
Namibia Block 2913B lies in water depths of 2,500-3,250m, adjacent to the South Africa maritime boundary. The licence is located within the Orange River basin, shared between both Namibia and South Africa. Block 2913B covers approximately 8,215km2 and was entered into by Impact in February 2014. Impact subsequently acquired 2D seismic, which identified a number of large Cretaceous oil prospects. At the start of 2017, a 1,900km² 3D seismic programme was acquired by the Company and is currently being processed.
The licence commitments in the current exploration phase of the Block have been satisfied and the participating interests is as follows: Total (Operator) (70%); Impact (20%) and NAMCOR (the state-owned oil company) (10%).
Orange Basin TCP lies offshore on the west coast of South Africa and covers approximately 15,474 km² in water depths of between 2,700m and 4,250m. Licenced in June 2016 as a Technical Co-operation Permit (“TCP”), it is now in the process of being converted into an Exploration Right. A technical evaluation on the TCP is currently underway with the objective of assessing the prospectivity of the Cretaceous basin-floor apron fans similar to those providing the prospects within Namibia Block 2913B.
The participating interests in the Orange Basin Deep TCP following completion of the farm-out by Total will be as follows: Total (Operator) (77.78%) and Impact (22.22%).
“We are delighted to have secured a company with such calibre as Total to partner us in both our Namibian and South African Orange Basin licences. We believe Total brings substantial technical and exploration expertise to the licences, particularly in deep water, and allows Impact to maintain a significant interest in these high impact, exploration assets which could potentially contain multi-billion barrel prospects. The technical evaluation on Orange Deep is currently underway and we believe it may contain deep water fans similar to those identified in Block 2913B, which lies to the north.”
“Today’s news is further successful delivery of our strategy to secure major oil companies, being Total, ExxonMobil, CNOOC and Statoil as partners.”
Robert Wilde, Interim Chief Executive Officer of Impact Oil & Gas