Block 2B is located in the Orange Basin where both Total and Shell recently announced significant oil and gas discoveries offshore Namibia. The block covers an area of 3,062 square kilometers off the west coast of South Africa about 300 kilometers north of Cape Town with water depths ranging from 50 to 200 meters. Over the main area of interest in the block, the A-J rift graben, water depth ranges from 140 meters to 160 meters. View Block 2B Presentation
Oil was discovered and tested by Soekor in the A-J1 borehole drilled in 1988. Thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters. The well was tested and flowed 191 barrels of oil per day of 36 degree API oil from a 10 meters thick sandstone interval at about 3,250 meters. Significant upside potential within six prospect areas at depths of up to 1,000 meters shallower than the reservoirs in A-J1 has been identified on the 686 square kilometers of 3D seismic data that covers the whole of the A-J graben area.
The A-J graben is a typical rift basin, similar to others in which major oil accumulations have been discovered by Africa Energy’s technical team in Uganda and Kenya. The oil was generated in lacustrine source rocks that are present in the deepest parts of the basin. The oil migrated and accumulated in fluvial and lacustrine sandstone reservoirs around the basin flanks.
There is also significant potential in other rift grabens to the north and south of the A-J graben and potential for significant gas discoveries in the shallower sequences above the rift graben succession over the whole block.
On March 3, 2022, the Company and its joint venture partners entered into a drilling contract for the Island Innovator semi-submersible rig with Island Drilling Company AS for the upcoming drilling of the Gazania-1 well. Mobilization of the rig is expected in late August 2022 with spud of the well to occur by October 2022. The joint venture partnership completed a seabed survey and ordered a wellhead in the second half of 2021 in preparation for drilling.
The Block 2B Exploration Right is in the Third Renewal Period, which is valid for a period of two years and will expire on November 16, 2022. The Third Renewal Period includes an obligation to drill a well.
Africa Energy holds a 27.5% participating interest in Block 2B. Eco Atlantic Oil & Gas Ltd. indirectly holds a 50% participating interest and is the operator of Block 2B. Panoro Energy ASA and Crown Energy AB indirectly hold the remaining 12.5% and 10% participating interests, respectively.