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    Africa Energy closes SA farm-out deal

Summary

Its farm-in partners will cover its share of the cost of drilling an exploration well.

by: Shardul Sharma

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Africa Energy closes SA farm-out deal

Canada-listed Africa Energy has closed the farm out of a majority stake in Block 2B offshore South Africa after securing government approval, it said on April 20.

The company has transferred operatorship and a 50% interest in the block to South Africa-based Azinam, and a further 12.5% interest to Oslo-listed Panoro Energy. In return, the farm-in partners will cover its share of the cost of a planned exploration well, Gazania-1, which is expected to spudded by the end of 2021.

Block 2B is located in the Orange basin and covers 3,062 km2 off the west coast of South Africa 300 km north of Cape Town in water depths ranging from 50 to 200 m. Africa Energy retains a 27.5% interest in the block.