Africa Oil Corp stated that its wholly-owned subsidiary, Africa Oil SA Corp, has entered into a definitive farm-out agreement with Azinam Limited, the Seacrest Capital-backed South West African-focussed oil and gas exploration company
Africa Oil, the Canadian oil and gas company with assets in Kenya, will acquire a 20 per cent interest and operating interest in the exploration right for Block 3B/4B, offshore South Africa.
Azinam will retain a 20 per cent participating interest and Ricocure (Pty) Ltd retains a 60 per cent participating interest.
Block 3B/4B is located in the Orange Basin and covers an area of 17,581 sq km in water depths ranging from 300 to 2,500 m. The partners have identified an inventory of leads and prospects from an existing 10,020 sq km 3D survey that encompasses a majority of the block.
During the initial three-year period, Africa Oil and its partners will undertake a regional sub-surface review of existing seismic, geological and engineering data, and may also include some select reprocessing of existing 3D data, leading to the identification of exploration prospects and recommendations for subsequent renewal periods.
Keith Hill, Africa Oil’s president and CEO, commented, “We are pleased to add this block to our inventory of high-quality exploration opportunities in an area where several major wells will be drilled by industry in the coming year.”
“To the north and along the trend, both Total and Shell plan to drill potential play openers and at the same time are increasing their positions in other blocks adjacent to block 3B/4B. From the large existing 3D survey, we see a number of prospects that are similar to those that the majors are targeting,” he remarked.
“This new position, combined with our other equity positions in Impact Oil and Gas and Africa Energy Corp., provides Africa Oil with a significant footprint in this exciting emerging play. We are also looking forward to partnering with Azinam, which has a leading licence and data position offshore South West Africa,” he concluded.
