Impact Oil & Gas Limited has announced that its subsidiary, Impact Africa Ltd, has entered into an agreement to acquire Silver Wave Energy Pte Ltd’s remaining 10% interest in Area 2, an exploration block located offshore South Africa.
This transaction will result in Impact Oil & Gas owning 100% of the block, further consolidating its control and strategic position in this highly prospective region.
Previously, Impact Oil & Gas had acquired a 90% stake in Area 2 from Silver Wave Energy in 2020, and with this latest deal, the company will assume full ownership and operatorship of the block.
Strategic Importance of Area 2
Area 2 is situated adjacent to Impact’s existing Transkei & Algoa blocks, which also lie offshore South Africa.
Together, these blocks form a continuous exploration area that extends across the entire deepwater part of the east coast margin.
Spanning approximately 125,000 km², this combined area represents a significant frontier exploration zone.
The strategic alignment of these blocks allows Impact Oil & Gas to leverage synergies in its exploration efforts, with geological plays extending seamlessly across both blocks.
Location and Geological Significance
Area 2 is part of the emerging South Africa and Namibia (SANAM) super-basin, a geological region that stretches from the northernmost part of Namibia down to the Durban basin in eastern South Africa.
The block shares geological characteristics with the prolific Orange basin in Namibia, where recent exploration activities have yielded promising results.
Notably, the Brulpadda and Luiperd discoveries in South Africa’s Outeniqua basin further underscore the potential of the SANAM super-basin.
Impact Oil & Gas believes that Area 2, like the adjacent blocks, contains world-class Cretaceous source rocks and large stratigraphic traps, which are critical for the formation of significant hydrocarbon reserves.
The company also anticipates that Area 2 may possess higher quality Cretaceous reservoir sands compared to other areas within the SANAM super-basin, further enhancing its exploration potential.
CEO’s Perspective on the Acquisition
Siraj Ahmed, CEO of Impact Oil & Gas, expressed his enthusiasm about the acquisition, stating, “As the holder of 100% of this high-caliber exploration block, we are particularly excited with the opportunity for this area to contain a very similar play to that which has brought Impact so much success in the Namibian Orange Basin.”
Ahmed’s statement reflects the company’s confidence in replicating its exploration success from Namibia in South Africa’s offshore waters.
Details of the Exploration Blocks
Area 2, officially referred to as Exploration Right 12/3/276, encompasses the Gamtoos, Algoa, and Transkei basins offshore eastern South Africa. The block covers an expansive area of approximately 78,708 km², with water depths reaching up to 4,500 meters.
However, the most promising prospective areas are located within 3,500 meters of water depth. Originally awarded to Silver Wave Energy in 2015, this exploration right has now come fully under the control of Impact Oil & Gas.
Adjacent to Area 2 lies Exploration Right 12/3/252, known as the Transkei & Algoa blocks, covering about 45,838 km² with water depths up to 3,000 meters.
In these blocks, Impact holds a 45% participating interest, while BG International Limited, a subsidiary of Royal Dutch Shell plc, holds the remaining 55% and serves as the operator.
Conclusion
The acquisition of full ownership of Area 2 by Impact Oil & Gas is a significant development that strengthens the company’s position in offshore South Africa’s exploration landscape.
With control over both Area 2 and the adjacent Transkei & Algoa blocks, Impact Oil & Gas is well-positioned to capitalize on the geological potential of the SANAM super-basin, potentially unlocking substantial hydrocarbon resources in the region.
This strategic move reflects the company’s commitment to advancing its exploration activities and its belief in the untapped potential of these offshore areas.