Block 1 spreads across 19,929 sq km offshore South Africa. (Image source: Eco Atlantic)

Eco (Atlantic) Oil & Gas Ltd has acquired from the Petroleum Agency South Africa (PASA) a substantial volume of 3D and 2D legacy data on Block 1 offshore South Africa

These high resolution and processing-ready data include two 3D seismic surveys totalling 3,500 sq km, 20,000+ line kms of 2D seismic, and logs for key exploration wells AF-1, AO-1, and AE-1. All these wells are drilled, with AF-1 confirming gas presence at flow rates of 32.4mn standard cu/ft per day, AE-1 indicating oil and gas shows, and AO-1 providing key stratigraphic data and reservoir markers.

The seismic surveys give a holistic understanding of key structural and stratigraphic targets, from inboard gas-prone zones to outboard oil-charged systems.

Eco is in the final stages of the formal acquisition of 75% working interest and operatorship in Block 1 through its wholly owned subsidiary Azinam South Africa Limited as per a farm-in agreement signed with Tosaco Energy.

Block 1 spreads across 19,929 sq km offshore South Africa, directly abutting the Namibian border. The block extends from the shore to the continental shelf, some 175 km offshore then to ~263 km out into deep water, encompassing a full margin transect from the shelf to deep water channel and fan complexes.

Water depths range from shallow shelf (~200 m) to deepwater (~1,000 m), enabling a full spectrum of play types. The acreage is considered geologically analogous to the Kudu gas field to the north and sits immediately south of recent discoveries made by Galp Energia (Mopane), Shell (Graff, La Rona), TotalEnergies (Venus), and Rhino Resources (Capricornus 1-X light oil discovery).

Potential partnership opportunities

Colin Kinley, co-founder and chief operating officer of Eco Atlantic, said, "The Orange Basin has rapidly emerged as one of the most compelling hydrocarbon fairways globally, with recent multi-billion-barrel discoveries adjacent in Namibia extending directly into the geological runway of Block 1. This asset provides Eco with material exposure across a full-margin basin play-ranging from proven, gas-rich inboard sections to oil-prone targets in the deepwater and ultra-deepwater domain.

"This strategic acquisition of high-quality 2D and 3D seismic, along with historic well logs deliver massive value to the company. This acquisition is currently conservatively estimated to replace US$50-60mn in acquisition costs required for new exploration. The data quality enables us to aggressively pursue subsurface interpretation and prospect ranking immediately. This dataset provides a robust foundation for accelerated prospect maturation and the opportunity to consider potential farm-out and partnership conversations.

"In parallel with our South African work programme, we are actively negotiating farm-out and drilling participation opportunities on our Orinduik Block in Guyana. We will update the market as those discussions progress. Our Walvis Basin acreage in Namibia, particularly the ultra-deepwater blocks, is also receiving strong interest as Orange Basin real estate becomes increasingly competitive. We continue to engage with industry and government stakeholders to advance partnerships across these core positions. Finally, our interest in Blocks 3B/4B in South Africa-now operated by TotalEnergies-offers unique upside potential, both on completion payment of farm down costs to Eco and importantly drilling the significant resource opportunity assessed on the block."

Galp is planning to sell operatorship stake in Mopane's PEL 83. (Image source; Adobe Stock)

Following a difficult first quarter earnings, Portugal-based Galp Energia is on the lookout for potential partners to develop a discovery in Namibia 

In February, the company confirmed a significant presence of light oil and gas condensate in a fifth well in the Mopane field offshore Namibia. The discovery came as a major anticipation for the company, which has since wanted to take up feasibility studies within the Mopane region. 

Meanwhile, the company is also planning to sell operatorship stake in Mopane's Petroleum Exploration Licence 83 by as much as 80%. 

Volatile market

"A partnership is our natural and preferred next step. We are re-engaging with interested parties we have had conversations with before and data is now being shared with them," said Galp's co-chief executive officer, Maria Joao Carioca.

Incidentally, Galp has faced a 29% drop in adjusted first-quarter core profit. The company's first-quarter adjusted earnings before interest, taxes, depreciation and amortisation took a hit of dipping oil output and lower refining margins, with revenue falling to US$761mn. With refining margins recorded at US$5.60 a barrel in the quarter from the previous year's US$12, and a 41% decline in quarterly adjusted net profit, Galp has attributed the low results to an "increasingly volatile market environment".

The MOPU will be equipped with a purpose-built process package. (Image source: Adobe Stock)

To advance field development work in Benin, Akrake Petroleum Benin SA has signed contracts for a mobile production unit (MOPU) and an Aframax tanker that will serve as floating storage and offloading (FSO) unit

Having converted from a medium-sized drilling rig, the MOPU will be equipped with a purpose-built process package. The units are expected to arrive in Benin during the fourth quarter of 2025.

Lime Petroleum Holding AS, which owns Akrare, signed a contract for a modern built jack-up rig as the operator of the Seme Field in Benin. The rig will be used for an anticipated 120-day drilling campaign in Benin.
Akrake, which is also the indirect subsidiary of Rex International, holds an approximately 76% working interest in the Seme Field, and aims to submit a field development plan to the Ministry of Energy, Water and Mines so that production in the fieldcan be initiated in the second half of 2025. 

Read more: 

TGS expands 3D seismic coverage in Benin 

Rex to seek financial advise from Hannam & Partners on Benin block

Masangane has more than 15 years of experience in the energy sector. (Image source: Adobe Stock)

In a bid to advance the development of Block 11B/12B in the Outeniqua basin offshore South Africa, Africa Energy Corp has hired Phindile Masangane as head of strategy and business development

Masangane will also join the Company's Board of Directors. 

Robert Nicolella, Africa Energy's chief executive officer, said, "We are pleased to have Phindile join our leadership group. She brings a significant amount of experience in the energy sector to our team. She will be instrumental in assisting Africa Energy as we work to move Block 11B/12B to the development phase and bring our world class gas and condensate discoveries to market. Her vast experience in energy infrastructure development, policy and regulation, along with project finance expertise, will play a pivotal role in shaping the strategic direction of the Company."

Natural gas exploration

Africa Energy is especially looking to explore natural gas presence from Block 11B/12B, in alignment with expert prediction that the region hosts 20% of global LNG capacity. With such marked potential, the company can use Masangane's extensive experience to develop the energy infrastructure of the region. 

Masangane has more than 15 years of executive management experience in the energy sector. She has previously served as the chief executive officer of the Petroleum Agency of South Africa, where she engaged with different stakeholders including government and non-governmental organisations advocating for the sustainable development of South Africa's indigenous oil and gas resources in support of energy security and economic development.

Masangane has been a partner of KPMG LLP and most recently part of the leadership team at Sasol South Africa (Pty) Ltd. She has a PhD in Chemistry from Imperial College, an MBA from University of the Witwatersrand and a Bachelor of Science (Chemistry & Mathematics) from University of Eswatini.