Impact Oil & Gas Limited’s wholly-owned subsidiary, Impact Africa Ltd, 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, Impact will own 100% of Area 2.
Area 2 sits outboard of, and compliments, Impact’s Transkei & Algoa blocks, offshore 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 km2 across a very exciting frontier exploration area, with plays extending across both blocks.
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 these areas share common world-class Cretaceous source rocks and similar giant stratigraphic traps. The company also predicts that Area 2 will contain higher quality Cretaceous reservoir sands than those currently explored in the SANAM super-basin.
Siraj Ahmed, CEO of Impact Oil & Gas, said, “As the holder of 100% of this high-caliber 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.”
Area 2, or Exploration Right reference 12/3/276 (Gamtoos, Algoa and Transkei basins), is located offshore eastern South Africa and covers approximately 78,708km². Although water depths extend to approximately 4,500 m, the prospective areas sit within 3,500 m. The licence was initially awarded to Silver Wave Energy in 2015.
Area 2 sits adjacent to Exploration Right 12/3/252, Transkei & Algoa, which covers approximately 45,838km² in water depths up to 3,000 m.
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.