Impact Oil & Gas completes farm-out of Transkei & Algoa offshore South Africa

Impact Oil & Gas, an Africa-focused exploration company, has completed the farm-out transaction between Impact Africa and BG International of a 50% working interest and operatorship in the Transkei & Algoa exploration right, offshore South Africa.

Following completion of the transaction, the participating interests will see Shell (Operator) have 50% whole Impact Africa, 50%. In addition, the government has granted the second renewal period of the licence. The two-year exploration period will begin this year. Impact and Shell intend to proceed with the acquisition of approximately 6,000 sq km of 3D seismic during 2022.

“We look forward to working with Shell to build on the considerable work done to date and further explore this exciting exploration province. This transaction, and the proposed 3D seismic acquisition programme, enables Impact to deliver on its objective of accelerating the exploration of the transform margin of the South African Natal Trough, which Impact believes has significant potential,” said Siraj Ahmed, CEO of Impact Oil & Gas.

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Transkei & Algoa, offshore South Africa

Exploration Right 12/3/252, Transkei & Algoa is located offshore eastern South Africa and covers approximately 45,838 sq km in water depths up to 3,000 metres. The licence was initially awarded to Impact Africa Limited as a Technical Cooperation Permit in 2012, followed by an application for an exploration right, which was granted in 2014.

The Algoa block is situated in the South Outeniqua Basin, a short distance east of Block 11B/12B, containing the Brulpadda gas condensate discovery and where Total has recently announced a further significant gas condensate discovery, following the successful drilling of the Luiperd-1X exploration well, which it is currently testing.

The Transkei block is situated north-east of Algoa in the Natal Trough Basin where Impact has identified highly material prospectivity associated with several large submarine fan bodies, which the joint venture will explore with focused 3D seismic data and then potential exploratory drilling. Impact and Shell plan to acquire over 6,000km² of 3D seismic data during the first available seismic window following completion of the transaction. This window is expected to be in the first quarter of 2022.