Africa Oil ups stake in Orange Basin play

South Africa

CAPE TOWN, July 12, 2023 – Africa Oil Corporation has upped its stake in South Africa’s Block 3B/4B for USD 10.5 million, the Canadian independent announced on Tuesday.

The company will take an additional 6.25% stake, which will bring its operating share of the concession to 26.25%.

The 17,600-square-kilometre block is located in the Orange basin next to major discoveries in the area including Venus, Graff, La Rona and Jonker.

In March 2023, Africa Oil Corporation announced findings of around 4 billion boe of unrisked P50 resources at the concession. The probability of success ranges from 11% to 39% over the 24 identified prospects.

The company and its partners are currently planning a two-well campaign on the block and are looking to farm out up to 55% working interest.

An environmental and social impact assessment is underway before drilling activity begins.

Following the deal, partners Azinam will hold a 20% stake and Ricocure (Proprietary) will hold the remaining 53.75% stake.

Azinam is a wholly owned subsidiary of Eco Atlantic Oil & Gas, of which Africa Oil Corporation holds a 15.02% stake.