Impact now holds a 9.5% interest in each of Blocks 2912 and 2913B. (Image source: Impact Oil & Gas)
Impact Oil & Gas Limited has completed the farm out of its interests in Blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia BV
This development was made possible following the receipt of relevant regulatory approvals from the Government of Namibia and consent from joint venture partners.
The farm out agreement between Impact Oil and Gas Namibia (Pty) Ltd and TotalEnergies EP Namibia BV dates back to 10 January 2024, wherby the decision was reached for the sale of a 9.39% undivided participating interest in Block 2912, and a 10.5% undivided participating interest in Block 2913B.
The transaction provides Impact with a carry loan for all of its remaining development, appraisal and exploration costs on the Blocks from 1 January 2024, until the date on which Impact receives the first sales proceeds from oil production on the Blocks. The carry loan is repayable from a share of Impact’s after-tax cash flows, and net of all joint venture costs, including capital expenditures, from production on the Blocks. In addition, on completion of the transaction, Impact received approximately US$99mn from TotalEnergies, as reimbursement for its share of costs incurred on the Blocks net to the farm out interests, prior to 1 January 2024.
Following completion of this transaction, Impact holds a 9.5% interest in each of Blocks 2912 and 2913B.
Siraj Ahmed, CEO of Impact, said, “We are pleased to have received approval from the Government of Namibia for our farm-out and look forward to continuing our journey towards first oil in Namibia. This is a transformational transaction for the company, securing Impact’s future participation in this exciting play. Additionally, this transaction, through the carry, gives Impact a funded exposure to further significant exploration opportunities in the Blocks, starting with the recently spud Tamboti-1X well.
“We look forward to continuing our longstanding partnership with NAMCOR, TotalEnergies and QatarEnergy, and would like to thank the TotalEnergies team for their ongoing collaboration.”
3D seismic raises promising prospects
With the successful penetration and testing of four drilled wells since the 2022 Venus-1X discovery, planning is on for the first development area to be finalised by 2025 end.
Data is currently being processed for interpretation from the licenced area over the southern and northern parts of the combined blocks, most of which are now covered by 3D seismic.
TotalEnergies has recently extended its contract with Northern Ocean for DeepSea Mira, which has already unlocked significant additional resource in the north of Block 2913B after spudding the Tamboti-1X well. Further deployment of the semi-submersible drilling unit might be required once prospects in the southern part of the Blocks that are currently being matured by the recent 3D-seimic data possibly heighten chances of potential high impact exploration wells.
