Azinam and Africa Oil Corp. have entered into an agreement under which Africa Oil will join Azinam offshore South Africa. Africa Oil will acquire a 20% participating interest in Block 3B/4B in the Orange Basin.
The acquisition is subject to customary regulatory consents, following which Africa Oil will become the operator of Block 3B/4B.
Azinam will retain a 20% participating interest post completion. License partner Ricocure (Pty) Ltd.’s participating interest shall remain unchanged at 60%.
Block 3B/4B is located in the Deep Western Mid-Orange Basin South Africa, extending from circa 120 to 250 km offshore. The block covers an area of 17,581 sq km and lies in water depths ranging from 300 to 2,500 meters.
Block 3B/4B sits at the center of an exciting emerging play which is being explored by a number of international oil & gas companies.
The block contains play types and prospects similar to those being targeted by majors in adjacent blocks.
During the Initial License Period of three years Azinam, Africa Oil and Ricocure shall carry out a regional subsurface review of existing seismic, geological and engineering data and may reprocess parts of the existing 3D data in order to high-grade the exploration prospects on the Block.