Africa Energy Doubles Stake in S African Block
Canada-based Africa Energy has signed definitive deals to raise its stake in the Total-operated 11B/12B block off South Africa from 4.9% to 10%, it said on August 24. The licence holds the Brulpadda field.
Africa Energy has a 49% interest in a consortium called Main Street, which in turn has a 10% position at the block. But it has agreed to consolidate the shares of its consortium partners Impact and Arostyle Investments. As a result of the transaction, Impact and Arostyle will become major shareholders in Africa Energy
The move comes as the project partners prepare to sink a second exploration well, Luiperd-1X, at the site this September. Their first resulted in the Brulpadda gas and condensate discovery in February last year.
"Block 11B/12B offshore South Africa contains one of the most exciting oil and gas exploration plays in the world today," Africa Energy CEO Garrett Soden said in a statement.
Total holds a 45% stake in 11B/12B, while Qatar Petroleum has 25% and Canadian Natural Resources International has 20%. South African authorities hope that gas recovered from the block can be used to bolster domestic supply, including to the under-utilised Mossel Bay gas-to-liquids plant.
Africa Energy is also appraising an oil discoveries at block 2B off South Africa and block PEL 37 off neighbouring Namibia.