Africa Energy will drill Gazania-1 on Block 2B offshore South Africa after closing out a farmout agreement (FOA) following government approval.
Block 2B is in Orange basin and covers 3,062 sq km off the west coast of South Africa, 300 km north of Cape Town, with water depths of 50-200 m. The block contains A-J graben, a typical rift basin. Gazania-1 will be drilled into the Gazania and Namaqualand prospects, updip of an existing oil discovery. The well is expected to spud by end 2021. The rig tender process is under way.
Under the terms of the FOA, Panoro will acquire 12.5% interest and carry the relevant Africa Energy Corp. (AEC) subsidiary for up to $2.5 million of the well cost. Separately, AEC has noted completion of a farm-out whereby Azinam Ltd. will take 50% share and operatorship in Block 2B. AEC now has 27.5% interest in the block.
