Africa Energy, an oil and gas company with exploration assets offshore South Africa and Namibia, has closed the acquisition of interest in the exploration right for Block 11B/12B off South Africa.
Africa Energy said on Wednesday that it had received governmental approval and finalized the transaction of effective 4.9% interest in Block 11B/12B offshore South Africa.
Block 11B/12B is located in the Outeniqua Basin approximately 175 kilometers off the southern coast of the country. The block covers an area of 18,734 square kilometers with water depths ranging from 200 to 2,000 meters.
Garrett Soden, Africa Energy’s president and CEO, said: “We are excited to partner with Total, Qatar Petroleum, and CNRI on Block 11B/12B in South Africa. This is a unique opportunity for us to explore with majors in one of the most prospective areas offshore the African continent. We look forward to spudding the Brulpadda-1AX well this month.”
Africa Energy holds 49% of the shares in Main Street 1549 Proprietary Limited, which closed separate farm-in transactions with Total and CNR International to acquire five percent from each for an aggregate ten percent participating interest in the Block 11B/12B, 4.9% net to Africa Energy.
The company paid an aggregate of $16.5 million for its share of the Main Street 1549 transactions. The closing payment included past exploration expenditures, interim period costs, and an agreed carry amount for Brulpadda-1AX well costs.
After closing, Total, as the operator, will have a 45% interest in the block while Qatar Petroleum and CNRI will have 25% and 20% interests, respectively.
It is worth reminding that Africa Energy initially entered into the farm-in deal with Total back in late November 2017.
As for the Brulpadda-1AX exploration well, it will be drilled in 1,432 meters of water by the Deepsea Stavanger semi-submersible rig to a total depth of 3,420 meters subsea.
The well will test the oil potential in a mid-Cretaceous aged deep marine fan sandstone system within stratigraphic closure. Drilling and evaluation of the well is expected to take approximately 85 days.
It is also worth noting that Total recently awarded a contract to Solstad Farstad for the provision of the Normand Ranger large anchor handling vessel (AHTS) and the Far Starling platform supply vessel (PSV) during the drilling campaign in Block 11B/12B for one firm well with a one well option.