Azinam, the Seacrest Capital-backed Southern Africa-focussed oil and gas company, will become the operator and 50 per cent licence holder in Block 2B offshore South Africa, which contains the A-J1 oil discovery
Following the completion of the transaction, Azinam and licence partners will drill up-dip of the A-J1 discovery, targeting 349 mmbbl of oil. The Block 2B area has the potential to provide the first major oil production offshore South Africa, and the first production in the Orange Basin.
Block 2B is located in the Orange Basin and covers 3,604 sq km off the west coast of South Africa 300 km north of Cape Town with water depths ranging from 50 to 200 m.
Under the terms of the farmout agreement with Africa Energy, Azinam will acquire a 50 per cent participating interest in Block 2B. Upon completion, Azinam will become the operator of Block 2B on behalf of the joint venture partners. Africa Energy will retain a 27.5 per cent participating interest in the block. Simultaneously, Panoro Energy will become a 12.5 per cent participating interest holder on the licence. Crown Energy AB indirectly holds the remaining 10 per cent participating interest.
Daniel McKeown, managing director of Azinam, commented, “With this transaction, Azinam is positioned to deliver the first major oil production offshore South Africa. With A-J1 having flowed oil to surface and with the benefit of a significant database of well and seismic information, Azinam believes that Block 2B has the potential to provide South Africa with its first major offshore oil production. This transaction will allow for a well to be drilled to test the wider potential of the A-J1 discovery. Azinam and partners are targeting 349 mmbbl of oil.”
