Impact Oil & Gas completes SA farm-out deal
Privately-owned Impact Oil & Gas has completed the deal with Shell to farm out its 50% interest in the Transkei and Algoa exploration permits offshore South Africa, the company said on August 31.
Once the transaction is closed, Shell will be the operator of the blocks with a 50% interest. Impact said that the South African government had granted the second renewal period of the licence. This is a two-year exploration period that began in August 2021.
Impact and Shell intend to proceed with the acquisition of approximately 6,000 km2 of 3D seismic during 2022, the company said.
The blocks cover approximately 45,838 km² in water depths up to 3,000 m. The licence was initially awarded to Impact Africa as a technical cooperation permit in 2012, followed by an application for an exploration right, which was granted in 2014.