Area 2 lies within the emerging South Africa and Namibia (SANAM) super-basin. (Image source: Impact Oil & Gas)

Impact Africa Ltd by Impact Oil & Gas Limited has entered into an agreement with Silver Wave Energy Pte Ltd to acquire its entire interest (10%) in Area 2, offshore South Africa

Impact currently owns a 90% participating interest and operatorship in Area 2, acquired from Silver Wave Energy in 2020. Following completion of this transaction, the company will own 100% of Area 2. 

Last month, Africa Energy Corporation announced move for a complete ownership of Block 11B/12B offshore the Republic of South Africa, as TotalEnergies EP South Africa BV and QatarEnergy International E&P LLC called quits from the region. 

Area 2 sits outboard of, and compliments, Impact’s Transkei & Algoa blocks, off the east coast of South Africa. Together, the blocks extend the entire length and breadth of the deepwater part of the east coast margin, covering a combined area of approximately 125,000 sq km across a very exciting frontier exploration area, with plays extending across both blocks.

Closing of the transaction is subject to customary conditions, including the approval of the Government of South Africa.

High-calibre exploration block

Area 2 lies within the emerging South Africa and Namibia (SANAM) super-basin, which stretches from northernmost Namibia to the Durban Basin of eastern South Africa. The Block shares the same prolific petroleum play as is currently being successfully explored in the Orange Basin of Namibia, and further proven by the Brulpadda and Luiperd discoveries in South Africa’s Outeniqua Basin. Impact believes that all of these areas share common world-class Cretaceous source rocks and similar giant stratigraphic traps. It is expecting higher quality Cretaceous reservoir sands in Area 2 than those currently explored in the SANAM super-basin.

Siraj Ahmed, CEO of Impact Oil & Gas, said, “We are pleased to have concluded this agreement with Silver Wave Energy and thank the Silver Wave team for their collaboration over the past four years. As the holder of 100% of this high-calibre exploration block, we are particularly excited with the opportunity for this area to contain a very similar play to that which has brought Impact so much success in the Namibian Orange Basin.”

Following completion of this transaction, Impact will hold 100% participating interest and operatorship in Area 2. In the adjacent Transkei & Algoa blocks Impact holds a 45% participating interest and BG International Limited, a wholly owned subsidiary of Royal Dutch Shell plc, holds a 55% participating interest and Operatorship. 

The Petroleum Agency of South Africa (PASA) has been particularly active since 2022 for the promotion and optimal development of on- and offshore oil and gas resources on behalf of the government, seeking geophysical contractors to acquire fresh seismic data in the Orange, Bredasdorp, Durban and Karoo basins.

DeepSea Mira contract extended. (Image source: Adobe Stock)

Northern Ocean Ltd has announced an extension of the contract with a subsidiary of TotalEnergies SE for continued work in Africa using the Deepsea Mira

The firm term of the contract is extended from October 2024 for one well and provides one additional well option. The extension from October provides firm revenue backlog of approximately US$24.3-34.2mn with the option to extend for an additional well potentially adding a further backlog of approximately US$26.9-36.9mn.

Vaalco's focus for the second half of 2024 will be the preparation for major projects.

VAALCO Energy reported operational and financial results for the second quarter of 2024 

George Maxwell, VAALCO’s Chief Executive Officer commented, “We had another strong quarter operationally and financially, closed on a highly accretive acquisition and continue to focus on profitably generating cash flow to fund future projects, while maintaining our commitment to meaningful shareholder returns through our quarterly dividend policy. We are very pleased with the solid results from our Canadian drilling program, which improved our liquid mix considerably in the second quarter as we had three of the four wells come in with higher-than-expected IP30 rates. We closed the Côte d‘Ivoire transaction on April 30, had a lifting there in May and collected payment in June.”

“Looking at our highly accretive Côte d’Ivoire acquisition, we recognized a $19.9 million non-cash bargain purchase gain, which benefited our second quarter earnings, but it’s the strategic opportunities that provide VAALCO another strong asset to support future growth that we are most excited about. We are very pleased with the results of our third-party reserve engineer’s calculation of proved reserves as of December 31, 2023 that shows even greater reserves than we initially disclosed, up approximately 30% from our initial disclosure. This strategic and highly cost-effective acquisition strategically expands our West African focus area with a sizeable producing asset that has significant upside potential and considerable future development opportunities in Côte d’Ivoire, a well-established and investment-friendly country.”

“The focus for the second half of 2024 will be the preparation for major projects expected to deliver a step-change in organic growth across the portfolio in 2025. We expect to see an increase in capex investment through the second half of the year associated with these numerous projects including the drilling campaign in Gabon and the FPSO upgrade in Cote d’Ivoire. We are excited about the future and plan to continue to generate strong operational cash flow to fund our impressive organic opportunities moving forward, while continuing to return capital to our shareholders through the quarterly dividend.”

In Egypt, VAALCO focused on enhancing production in the first half of 2024 through a series of planned workovers, as well as through interventions using the OGS-10 rig. VAALCO finalised the K-81 recompletion at the start of the first quarter which was a carry-over from its 2023 drilling activity. The EA-55 well, drilled in October 2023, was fracked and put online in January 2024. Three additional workover recompletions were completed in the second quarter with one more in progress. With the low cost of workovers, the well economics are strongly positive.
In Gabon, the company is currently finalising locations and planning for the next drilling campaign at Etame that is expected to occur early in 2025.

In Côte d'Ivoire, the Baobab production shutdown took place successfully and as per plan between March 21, 2024 and April 13, 2024. All nine operational production wells were successfully restarted in mid-April with flush production rates of just over 21,000 BOEPD, which has since stabilized to around 18,000 BOEPD.

During the second quarter, one lifting took place in May of 655,715 gross barrels or 211,294 net barrels to VAALCO, achieving a price of $81.70 per barrel.

Work with Modec, the operator of the Baobab Floating Production and Offloading Vessel (FPSO), on the drydocking project for the FPSO, projected to be offline in 2025, continued in the second quarter of 2024. The operator is currently preparing detailed project timetable and costings for the partners and regulator; however preliminary work including the execution of a letter of intent with Modec on April 4, 2024 which covers the key contracts to be executed, including vessel purchase, EPC, and O&M amendments, as well as selection of the disconnect and reconnect contractor, and support for the revised yard bid from Dubai dry docks among other activities. Additionally, in the second quarter of 2024, the outstanding tank inspections continued in preparation for the dry dock.
Svenska Acquisition

VAALCO closed its acquisition of Svenska for the net purchase price of $40.2 million, on April 30, 2024 after certain regulatory and government approvals were received.

Panoro Energy gives updates. (Image source: Adobe Stock)

Panoro Energy ASA has provided an update for its Half Year 2024 results 

John Hamilton, CEO of Panoro, said, “Our high levels of development activity have continued throughout the year-to-date with two production wells successfully drilled and completed on the Dussafu Marin Permit offshore Gabon, accompanied by the resumption of infill drilling at the first of two planned wells on Block G offshore Equatorial Guinea in early July. With further development drilling and conventional ESP installations to come at Dussafu, plus two high impact E&A wells planned on the Akeng Deep and Bourdon prospects, in Equatorial Guinea and Gabon respectively, we have a very exciting organic growth pipeline.

"In line with our 2024 shareholder returns policy we initiated a share buyback programme in May which remains ongoing and enhances our regular quarterly cash distributions. Furthermore, we have increased underlying asset value for shareholders with two significant oil discoveries offshore Gabon which are being fast-tracked into production having proved extensions of both the Hibiscus and Hibiscus South fields, demonstrating how our infrastructure led exploration and appraisal strategy can create material upside for our stakeholders.”

Group working interest production in the first half of the yaer averaged 9,168 bopd, with Equatorial Guinea at 3,468 bopd, Gabon at 4,030 bopd, and Tunisia at 1,670 bopd.

In Equatorial Guinea's Block G, drilling has recommenced at the Ceiba Field and Okume Complex which will add new production volume when two new infill wells will be onstream. While the first infill well has successfully been drilled and completed with promising initial results, the second infill well is expected to be completed and onstream in October.

Adjustments to the work programme of Dussafu Marin Permit in Gabon have resulted in two significant oil discoveries. Oil was confirmed in May at north-east extension of the Hibiscus South field (estimated mid case 5 - 6 MMbbls gross recoverable reserves), and also at northern flank of the Hibiscus field (estimated mid case of 8 - 12 MMbbls gross recoverable reserves).

The DRM-3H production well on the Ruche field, which was completed in April, encountered good quality oil saturated reservoir in the Gamba formation and will be put onstream in the current campaign with a new conventional electrical submersible pump (ESP).

Similar positive results were reported in July from the Hibiscus South field in the DHBSM-2H production well that was put onstream with the new conventional ESP system.

Contract for the Borr Norve jack-up drilling rig have been extended until February 2025. It will undertake well workovers / ESP replacements and the drilling of one production well into the northern flank of the Hibiscus field, subjected to production and logistical considerations.

The current campaign will therefore result in a total of eight new production wells across the Hibiscus / Hibiscus South / Ruche fields (in addition to the six pre-existing production wells at the Tortue field).

The Bourdon prospect test well (DBM-1) will be the last operation in the current campaign in early 2025. 

Gross production at Dussafu is expected to reach 40,000 bopd once all wells in the current campaign are completed.

In Tunisia, ooperations are ongoing for routine workovers to replace ESP pumps, and well stimulations; detailed planning for development drilling campaign on the Rhemoura and Guebiba fields, and exploration and appraisal activities.

Equatorial Guinea - Block S and Block EG-01

The Noble Venturer drill ship has also been contracted to drill the Kosmos Energy operated Akeng Deep infrastructure led exploration (“ILX”) well in Block S once the two Block G infill wells have been drilled and completed. The Akeng Deep ILX well is intended to test a play in the Albian, targeting an estimated gross mean resource of ~180 million barrels of oil in close proximity to existing infrastructure at Block G. Other partners in Block S are GEPetrol and Trident Energy
A successful outcome at Akeng Deep can have a positive read across to the adjacent Panoro operated Block EG-01 where Panoro is conducting subsurface studies based on existing 3D seismic data
The seismic data re-processing project for EG-01 has commenced incorporating leading edge pre-stack depth migration (PSDM) techniques
Equatorial Guinea - Heads of Terms Agreed for Block EG-23