UK-based Impact Oil & Gas is considering options to divest its 20% stake in Block 2913B in the Orange basin, offshore southern Namibia, reported Reuters, citing four industry sources.

Earlier this year, Impact Oil & Gas and its partners made a significant light oil discovery with associated gas at the block, following the drilling of the Venus 1-X exploration well to a depth of 6,296m.

The exploration well identified nearly 84m of net oil pay in the sandstone reservoir of the Lower Cretaceous age.

Covering an area of approximately 8,215km² in water depths up to 3,000m, Block 2913B is operated by TotalEnergies with a 40% interest. Other partners include QatarEnergy (30%), and Namibian state-owned oil company NamCor (10%).

Impact has hired investment bank Jefferies to prepare the stake sale process for Block 2913B.

A potential sale could earn the oil and gas exploration firm between $500m and $1bn, the sources said.

A company spokesperson was cited by the news agency as saying: “We are currently looking forward to participating in the Venus appraisal programme later this year.”

Last month, TotalEnergies CEO Patrick Pouyanne said the Venus appraisal drilling is scheduled to begin in August 2022. This would provide a better idea of the field’s development potential, size, and costs.

Impact’s investors include Africa Oil , and South Africa-based Hosken Consolidated Investments. It is currently in deliberation with potential investors to secure funding of up to $100m for the appraisal programme.

The company also held early talks with potential buyers for the sale of a stake in the offshore block, according to the sources.