Azinam South Africa Ltd (ASAL), a Seacrest company, has announced the completion of its acquisition of a 50% operated interest in Block 2B offshore South Africa
Under the terms of the company’s farmout agreement with Africa Energy Corp, ASAL has acquired a 50. % participating interest in Block 2B and become the Operator of Block 2B on behalf of the joint venture partners. Africa Energy Corp will retain a 27.5% participating interest in the block.
Simultaneously, Panoro Energy has become a 12.5% participating interest holder on the licence. Crown Energy AB indirectly holds the remaining 10% participating interest.
ASAL and the other licence partners plan to drill up-dip of the A-J1 oil discovery, with the well 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 oil production in the Orange Basin. ASAL is supported by its partner SeaPulse Ltd, a Seacrest and Robert Friedland-backed vehicle.
Daniel McKeown, managing director of Azinam South Africa Limited, commented, With A-J1 having flowed oil to surface and with the benefit of a significant database of well and modern 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 its partners are targeting 349 mmbbl of oil.”
Paul Murray, director of Azinam Group, commented, “With the benefit of new 3D seismic, we can see that A-J1 drilled the down-dip section of a potentially much larger oil accumulation in a number of reservoirs.
Confirmation of a significant oil field on Block 2B, in a benign ocean setting and close to shore, represents a significant opportunity for the Republic of South Africa and the Block 2B licence holders to deliver the first major oil production offshore South Africa. ASAL has significant corporate experience in drilling offshore exploration wells to the highest international safety and performance standards.”
