New report about resources in 24 prospects off South Africa sees the light of day

Canadian oil and gas company Africa Oil Corp. has revealed that an independent review of its prospective resources in a block in the Orange Basin offshore South Africa has been completed by RISC Advisory (UK) Limited.

Africa Oil explained on Wednesday, 8 March 2023, that the review of the prospective resources and probability of geological success of 24 exploration prospects within Block 3B/4B was completed by RISC in accordance with Canadian National Instrument 51-101 – Standards for Oil and Gas Activities, the Canadian Oil and Gas Evaluation Handbook (COGE Handbook) and the Petroleum Resources Management System 2018 (PRMS). The effective date of RISC’s report is 7 March 2023.

RISC’s report provides an evaluation of prospective resources from a prospect inventory identified using 3D seismic data and follows the completion of the reprocessing of 2,200 km² of 3D seismic data and play-opening discoveries in Namibia, including TotalEnergies’ Venus discovery and Shell’s Graff, La Rona, and Jonker light oil discoveries, which prove the existence of a working petroleum system for light oil, gas condensate and gas in the geological play fairway.

According to the report, the proven reservoirs in Graff and Venus discoveries are similar to Cretaceous reservoirs and geological plays that would be targeted in Africa Oil’s Block 3B/4B. RISC has reported total unrisked gross P50 prospective resources in Block 3B/4B of approximately 4 billion barrels of oil equivalent (boe). In addition, the probability of success ranges from 11 per cent to 39 per cent over the 24 prospects identified.

Keith Hill, Africa Oil Chief Executive Officer, commented: “Africa Oil is at the forefront of the exciting appraisal and exploration activities in the Orange Basin, probably the most sought-after new petroleum region globally. We are the only publicly-listed Independent E&P company with exposure to the transformational upside of the Venus discovery and its possible westerly extension.

“We are also excited about the large prospect inventory in Block 3B/4B; the prospects are all based on 3D seismic and are of similar age and type to the discoveries announced by Shell and TotalEnergies in the Orange Basin. We are keen to begin drilling our first prospect, possibly as soon as 2024, and we will start the environmental impact surveys this month.”

Africa Oil and its partners are progressing with plans to conduct a two-well campaign on Block 3B/4B and are in discussions with various potential partners to farm out up to a 55 per cent gross working interest in the block, which covers an area of 17,581 km² within the Orange Basin offshore South Africa.

Africa Oil is the operator with a 20 per cent participating interest, while its partners are Ricocure Pty. Limited (53.75 per cent) and Azinam South Africa Limited, a subsidiary of Eco Atlantic Oil & Gas (26.25 per cent).

Regarding Africa Oil’s recent activities, it is worth noting that the Canadian player entered Equatorial Guinea for low-cost, infrastructure-led exploration opportunities, thanks to the inking of two production sharing contracts (PSCs) for two offshore blocks.

Following the ratification, Africa Oil will hold 80 per cent operated interests in each block with the remaining interest to be held by GEPetrol, the national oil company of Equatorial Guinea.