Africa Oil to increase operated interest in block offshore South Africa

Africa Oil Corp., Vancouver, BC, has agreed to increase its operated working interest in Block 3B/4B in the Orange basin offshore South Africa.

The company signed a legally binding letter of intent with Azinam Ltd., a wholly owned subsidiary of Eco (Atlantic) Oil & Gas Ltd., to acquire the 6.25% interest for total cash consideration of $10.5 million.

An independent review of an inventory of exploration prospects within the block notes total unrisked gross P50 prospective resources of about 4 billion boe with probability of success of 11-39% over 24 prospects identified, the company said.

Africa Oil holds 15.02% interest in Eco. Post deal close, the company will hold an 26.25% (operated) interest in Block 3B/4B, subject to and, on the receipt of the government's approval for the transfer, with Azinam holding 20% and Ricocure (Proprietary) Ltd. holding the remaining 53.75%.

Africa Oil and block partners are progressing plans to conduct a two-well campaign and are in discussions with potential partners to farm out up to 55% gross working interest in the block.

The 17,581 sq km block lies to the southeast and on trend with oil discoveries including TotalEnergies-operated Venus and Shell-operated Graff.