Canadian firm African Oil announced Wednesday a farmout agreement with Namibian company Azinam Ltd. to acquire interests in a block offshore South Africa, Kallanish Energy learns.
Africa Oil will acquire a 20% participating interest and operatorship in Block 3B/4B. Azinam will retain a 20% participating interest and energy firm Ricocure keeps its 60% participating interest. The value of the transaction wasn’t disclosed.
The block covers an area of 6,788 square miles in water depths ranging from 980 to 8,200 feet and it will be subject to exploratory activities.
“To the north and along trend, both Total and Shell plan to drill potential play openers and at the same time are increasing their positions in other blocks adjacent to Block 3B/4B,” said Keith Hill, Africa Oil’s president and CEO, in a release.
“From the large existing 3D survey, we see a number of prospects that are similar to those that the Majors are targeting,” he added.
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