Impact Oil & Gas Limited (Impact), an African-focused exploration company, has agreed to farm-out a 50% working interest and operatorship in the Transkei & Algoa exploration blocks to BG International Limited, a wholly-owned subsidiary of Shell, according to a press release.
Siraj Ahmed, CEO of Impact, commented: “We are delighted to have secured a farm-out partner of Shell’s caliber, highlighting the significant value potential of our exceptional South African exploration portfolio. Shell joins the Transkei & Algoa license at a very exciting time for exploration drilling in South Africa. They bring substantial exploration expertise, with a particular understanding of the potential of offshore South Africa, and an agreed strategy to accelerate the work program to build upon the considerable work already undertaken by Impact and the previous joint venture (JV) partnership.”
As per the deal, Shell will acquire a 50% working interest in the aforementioned blocks. Furthermore, Shell has been offered the chance to acquire a further 5% working interest provided the JV elect to move into the “Third Renewal Period”, which is expected to be approximately 2024.
The Algoa block is situated in the South Outeniqua Basin and contains the Brulpadda gas condensate discovery. The Transkei block is situated north-east of Algoa in the Natal Trough Basin where Impact has identified highly material prospectivity.