Impact Oil & Gas, a privately-owned, Africa-focused, exploration company, has announced that following receipt of all the relevant regulatory approvals from the Government of Namibia and joint venture partner consents, the Company has completed the farm out of its interests in Blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia and received the associated cash payment of USD99 million.
As previously announced on 10 January 2024, Impact, through its wholly owned subsidiary, Impact Oil and Gas Namibia, signed a farm out agreement with TotalEnergies EP Namibia, a wholly-owned subsidiary of TotalEnergies S.E., for the sale of a 9.39% undivided participating interest in Block 2912, and a 10.5% undivided participating interest in Block 2913B (Farm Out Transaction).
The Farm Out Transaction provides Impact with a carry loan for all of its remaining development, appraisal and exploration costs on the Blocks from 1st January, 2024 ('Effective Date'), until the date on which Impact receives the first sales proceeds from oil production on the Blocks ('First Oil Date'). The carry loan is repayable from a share of Impact’s after-tax cash flows, and net of all joint venture costs, including capital expenditures, from production on the Blocks. In addition, on completion of the Farm Out Transaction, Impact received approx. USD99 million from TotalEnergies, as reimbursement for its share of costs incurred on the Blocks net to the farm out interests, prior to the Effective Date of the transaction.
Following completion of this transaction, Impact holds a 9.5% interest in each of Blocks 2912 and 2913B.
Siraj Ahmed, Chief Executive Officer of Impact, commented:
'We are pleased to have received approval from the Government of Namibia for our farm-out and look forward to continuing our journey towards first oil in Namibia. This is a transformational transaction for the Company, securing Impact’s future participation in this exciting play. Additionally, this transaction, through the carry, gives Impact a funded exposure to further significant exploration opportunities in the Blocks, starting with the recently spud Tamboti-1X well.
'We look forward to continuing our longstanding partnership with NAMCOR, TotalEnergies and QatarEnergy, and would like to thank the TotalEnergies team for their ongoing collaboration.'
OPERATIONAL UPDATE
Following the 2022 Venus-1X discovery well, four further exploration and appraisal wells have been drilled on the two blocks to date. Of the five wells drilled, four have, successfully penetrated and tested the Venus field. As a result, planning is progressing for the first development area, with a development scheme expected to be finalised by the end of 2025.
During 2024, two additional 3D seismic acquisition programmes were completed to facilitate further exploration over the southern and northern parts of the combined blocks. This has resulted in most of the licenced area now being covered by 3D seismic. This data is currently being processed and interpreted and will help further evaluate prospects and leads in the far northern and southern parts of the blocks.
On 20 October 2024, the DeepSea Mira spud the Tamboti-1X well, targeting significant additional resource in the north of Block 2913B. Beyond Tambotti-1X, there are a number of prospects in the southern part of the Blocks that are currently being matured by the recent 3D-seimic data and create an opportunity for follow-on potential high impact exploration wells.
About Block 2913B, offshore Namibia
Petroleum Exploration Licence 56, Block 2913B, is located offshore southern Namibia and covers approx. 8,215k sq km in water depths between 2,450m and 3,250m. Impact entered the licence as Operator in 2014, acquiring 2D, then 3D seismic data which defined the Venus prospect. In 2017, Impact and NAMCOR were joined by TotalEnergies, bringing with it significant deep-water drilling expertise to the Joint Venture, and in 2019 QatarEnergy joined the Joint Venture.
About Block 2912, offshore Namibia
Petroleum Exploration Licence 91, Block 2912, is located offshore southern Namibia, adjacent to, but outboard of, PEL 56 and covers approx. 7,884 sq km in water depths between 3,000 and 3,950m. Impact joined TotalEnergies and NAMCOR on the licence in 2019, as did QatarEnergy.
Source: Impact Oil & Gas
