Ester Mbathera
Africa Oil Corp. announced the completion of a strategic farmdown by its investee company, Impact Oil & Gas, in Blocks 2912 and 2913B, known as the Farm Down to TotalEnergies EP Namibia project.
The company announced last week that Impact received approximately USD 99 million and retains a 9.5% interest, benefiting from a carry loan to cover remaining costs until the first oil production.
Africa Oil president and chief executive, Roger Tucker, said the Farm Down allows the company to retain a funded interest in the Venus development project that is expected to add significant reserves and production to our portfolio.
“We also believe there is tremendous exploration upside on the blocks, starting with the recent spud Tamboti-1X well,” he said.
He said the completion of Farm Down o satisfies a condition precedent to the amalgamation to effect the consolidation of all of Prime Oil & Gas Coöperatief U.A. in Africa Oil.
“We expect to close the amalgamation during the first quarter of 2025, which will then allow us, subject to customary board approvals, to implement the enlarged shareholder returns program, as previously communicated in our Prime consolidation press release of June 24, 2024,” said Tucker.
Venus-1X well was discovered in 2022 and is considered a world-class light oil and associated gas reservoir.
Since this discovery, we have drilled four more exploration and appraisal wells on the blocks.
The company said of the five wells drilled, four have successfully penetrated and tested the Venus field.
“As a result, planning is currently progressing for the first development area, with a development scheme expected to be finalised by the end of 2025,” read the company statement.
Africa Oil currently has a stake of approximately 32.4% in Impact.
TotalEnergies, as the operator, holds a 50.5% interest in Block 2913B, with QatarEnergy and NAMCOR holding 30% and 10%, respectively.
Block 2912, which is adjacent to 2913B, features similar ownership structures.
