SOUTH AFRICA: Eco Atlantic Deposits $20M as Capex for the Gazania-1 well on Block 2B

Africa Energy Corp. has reported that Eco (Atlantic) Oil & Gas Ltd. has deposited approximately US$20 million in escrow to support its capital expenditure requirements for the Gazania-1 well on Block 2B offshore South Africa after closing the acquisition of Azinam Group Limited.

Garrett Soden, Africa Energy’s President and CEO, commented, “We are excited to move forward on Block 2B and drill the Gazania-1 oil exploration well this year. The rig has been contracted and is expected to mobilize from the North Sea in August for the 45-day journey to South Africa. The Block 2B joint venture plans to spud the well by October with drilling expected to last 30 days, including a full set of logs in the success case. The block has significant contingent and prospective resources in relatively shallow water and contains the A-J1 discovery that flowed light sweet crude oil to surface. Gazania-1 will target two large prospects seven kilometers up-dip from A-J1 in the same region as the recent Venus and Graff discoveries.”

Block 2B is located offshore South Africa in the Orange Basin where both TotalEnergies and Shell recently announced significant oil and gas discoveries offshore Namibia. The block covers 3,062 square kilometers approximately 25 kilometers off the west coast of South Africa near the border with Namibia in water depths ranging from 50 to 200 meters. Soekor discovered and tested oil on Block 2B in 1988 with the A-J1 borehole, which intersected thick reservoir sandstones between 2,985 meters and 3,350 meters. The well flowed 191 barrels of oil per day of 36-degree API oil from a 10-meter sandstone interval at approximately 3,250 meters. Significant prospectivity has been identified over the entire A-J graben area using 686 square kilometers of 3D seismic data acquired in 2013.

Africa Energy has a 27.5% participating interest in Block 2B offshore South Africa. The block is operated by a subsidiary of Eco Atlantic, which holds a 50% participating interest. A subsidiary of Panoro Energy ASA holds a 12.5% participating interest, and Crown Energy AB indirectly holds the remaining 10%.