Africa Energy extends exploration licence on South Africa Block 2B

Africa Energy Corporation. is advancing its farm-out with plans to drill an exploration well in 2019 on Block 2B offshore the west coast of South Africa.

The company announced the development after it was granted a two-year renewal of the exploration licence by South Africa’s Petroleum Agency.

Block 2B covers 3,604 square kilometres in 50-200 metres of water. The block contains an existing oil discovery from the A-J1 well drilled by formerly South Africa state-owned Soekor in 1988.

The A-J1 well tested light oil from a Lower Cretaceous sandstone section. The A-J graben is rift basin related to the Atlantic opening during Early Cretaceous.

In addition to the A-J southern graben, Block 2B also includes prospectivity in the northern graben. According to Africa Energy, the greater rift trend in the region is similar to the East African Rift where major oil accumulations have recently been discovered in Kenya’s South Lokichar basin and Uganda’s Albert rift.

Africa Energy Chief Executive Officer Garrett Soden recently said that six prospects have been identified on Block 2B, containing an estimated 400 million bbl of prospective resources.

The southern and northern graben combined contain 800 million bbl. Most of these were in 150 metres of water only 25 kilometres offshore.

The company plans to farm out 50% or more of the block on an estimated well cost of US$20 million. “The 2019 drilling opportunity will occur 9-12 months after the farm-out is complete,” Soden said.

Africa Energy currently holds 90% participating and operating interest in Block 2B. Crown Energy AB holds the remaining 10% through a subsidiary company.

Source: Oil & Gas Journal