(Ecofin Agency) - Africa Energy has announced the acquisition of a 90% participating interest and operatorship in Block 2B offshore the Republic of South Africa.
According to the company, $1 million was paid to Afren and some of its subsidiaries for the acquisition of a 25% participating interest in Block 2B. Another $2 million together with the issuing of 14.8 million new common shares was offered to Thombo Petroleum, a privately held company with a 34.5% participating interest in Block 2B.
Africa Energy also finalized a farm-in agreement with an affiliate of Crown Energy to acquire a 30.5% participating interest in the same block. Under the agreement, the Company will repay Crown Energy for about $0.3 million of net back costs and fund costs for latter’soutstanding 10% participating interest associated with the drilling and testing of the next well in Block 2B.
“I'm very happy to announce that we have closed these three deals and now have a 90% participating interest in Block 2B. Our proven Cape Town-based technical team has identified numerous prospects and potential drilling locations in Block 2B utilizing the previously acquired 3D seismic. The Company continues to identify, evaluate and negotiate potential transactions within Africa during this current oil sector downturn, and I am confident this will be the first of a number of transactions to grow Africa Energy,” James Phillips, President and Chief Executive Officer for Africa Energy, told Energy-pedia.
Block 2B covers 4360km² of the South African Western offshore about 300km north of Cape Town in water depths of 50m-to-200m and over main area of interest in the block, the A-J rift graben they are 140m-to-160m.Oil was discovered and tested by Soekor in the A-J1 borehole drilled in 1988. The well was tested and flowed 191bpd of 360API oil from a 10m sandstone interval at about 3250m.