Impact Oil & Gas has announced that its wholly-owned subsidiary, Impact Africa, has agreed with a wholly-owned subsidiary of Royal Dutch Shell, BG International, for the farm-out of a 50% working interest and operatorship in the Transkei & Algoa exploration right offshore South Africa (Exploration Right reference 12/3/252).
Shell is to acquire a 50% working interest in the Blocks and operatorship and has been granted the option to acquire an additional 5% working interest should the joint venture agree to move into the Third Renewal Period, which is to be 2024.
Impact and Shell plan to acquire over 6,000 square kilometres of 3D seismic data during the first available seismic window following completion of the transaction. This window is to be in the first quarter of 2022.
The closing of the transaction is subject to several conditions, including the approval of the South African government. The participating interests in the Transkei & Algoa blocks following completion of the farm-out by Impact will be as Shell as the operator with a 50% working interest and Impact with a 50% working interest.
The Chief Executive Officer of Impact Oil & Gas, Siraj Ahmed said, “’We are delighted to have secured a farm-out partner of Shell’s calibre, highlighting the significant value potential of our exceptional South African exploration portfolio. Shell joins the Transkei & Algoa license at a very exciting time for exploration drilling in South Africa. They bring substantial exploration expertise, with particular understanding of the potential of offshore South Africa, and an agreed strategy to accelerate the work program to build upon the considerable work already undertaken by Impact and the previous JV partnership.”
TRANSKEI & ALGOA BLOCKS
Exploration Right 12/3/252, Transkei & Algoa is located offshore eastern South Africa and covers approx. 45,838 square kilometres in water depths up to 3,000 meters.
The Algoa block is situated in the South Outeniqua Basin, a short distance east of Block 11B/12B, containing the Brulpadda gas condensate discovery and where Total has recently announced a further significant gas condensate discovery, following the successful drilling of the Luiperd-1X exploration well, which it is currently testing. The Transkei block is situated north-east of Algoa in the Natal Trough Basin where Impact has identified high materials associated with several large submarine fan bodies, which this joint venture will explore with focused 3D seismic data and then potential exploratory drilling.