WOKING, UK – Impact Africa Ltd. has entered an agreement with Shell for the farm-out of a 50% working interest and operatorship of the Transkei & Algoa exploration right offshore South Africa.
Under the terms of the farm-out agreement, Shell will acquire a 50% working interest in the Transkei & Algoa blocks and operatorship. Shell has also been granted the option to acquire an additional 5% working interest should the joint venture elect to move into the third renewal period, which is expected to be in 2024.
While part of the same license, the Transkei & Algoa blocks have different geological settings. The Algoa block is in the South Outeniqua basin, a short distance east of block 11B/12B, which contains Total’s Brulpadda and Luiperd gas condensate discoveries. The Transkei block is northeast of Algoa in the Natal Trough basin where Impact has identified highly material prospectivity associated with several large submarine fan bodies. This joint venture will explore with focused 3D seismic data and then potential exploratory drilling.
Impact and Shell plan to acquire more than 6,000 sq km (2,317 sq mi) of 3D seismic data during the first available seismic window following completion of the transaction. This window is expected to be in 1Q 2022.
Closing of the transaction is subject to customary conditions, including the approval of the government of South Africa.
Following completion of the farm out, Shell will hold 50% operated interest and Impact will hold the remaining 50%.
Exploration Right 12/3/252, Transkei & Algoa spans an area of 45,838 sq km (17,698 sq mi) in water depths up to 3,000 m (9,842 ft). It was initially awarded to Impact as a technical cooperation permit in 2012, converted two years later to an exploration right.