Africa Oil announces completion of the strategic farm down for orange basin block 3b/4b

AOSAC is a wholly-owned subsidiary of Africa Oil.

AOSAC has retained a direct 17.00% interest in Block 3B/4B and transferred the operatorship of the block to TotalEnergies.

Africa Oil will receive, subject to achieving certain milestones defined in the agreement, staged cash payments for a total cash payment of US$10 million of which US$3.3 million is now due, and the remaining balance in two successive payments conditional upon achievement of key operational and regulatory milestones.

Africa Oil will also receive a full carry of its 17.00% retained share of all JV costs, up to a cap, repayable to TotalEnergies and QatarEnergy from production in case of exploration success and development, which is expected to be adequate to fund the Company’s share of drilling for up to two wells on the licence.

Under a separate agreement between Africa Oil, AOSAC, Eco (Atlantic) Oil & Gas Limited (Eco) and Eco’s subsidiary, Azinam Limited (Azinam), signed in July 2024, AOSAC will acquire an additional 1.00% in Block 3B/4B from Azinam (Eco Agreement) subject to the satisfaction of customary conditions precedent, including approvals from the government of South Africa.

Africa Oil Chief Executive Officer, Dr Roger Tucker, commented: “Africa Oil has an unrivalled position amongst its Independent E&P peer group in the world-class Orange Basin. This includes our interest in the Venus discovery and the follow-on appraisal and exploration upside on Block 2913B, offshore Namibia. This farm down with TotalEnergies and QatarEnergy, two companies with deep geological knowledge of the basin, will facilitate exploration activities on Block 3B/4B, and extends our near-term scope for testing significant upside potential in our portfolio.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29082024/africa-oil-announces-completion-of-the-strategic-farm-down-for-orange-basin-block-3b4b/