Africa Energy Corporation closed three transactions resulting in the company acquiring a 90% participating interest and operator-ship in Block 2B offshore the South Africa, Ecofin Agency reported.
The company paid $1m to Afren plc for the acquisition of 25% participating interest in Block 2B. Then, it issued 14.8m new common shares to raise $2m to purchase Thombo Petroleum Ltd stake in the block, which came to 34.5% participating interest. Africa Energy completed a farm-in agreement with a subsidiary of Crown Energy AB to takeover a 30.5% participating interest in the development, informed Oil Voice.
Africa Energy’s President and CEO, James Phillips, said: “a well drilled in this block by South African state company Soekor in 1988 discovered and tested light oil from a Cretaceous sandstone section.” He added that the company’s Cape Town-based technical team has identified numerous prospects and potential drilling locations in Block 2B utilizing the previously acquired 3D seismic.
Block 2B covers 4360 sq.km of the South African Western offshore about 300km north of Cape Town in water depths of 50-to-200m. Oil was discovered and tested by Soekor in the A-J1 borehole drilled in 1988. The well was tested and flowed 191b/d of 360API oil from a 10m sandstone interval at about 3250m.