Oil and gas company Africa Energy has signed definitive agreements to increase its stake in Block 11B/12B offshore South Africa.
The deals will see Africa Energy expand its stake in the block from 4.9% to 10%.
Covering 18,734km², the Block 11B/12B is located in the Outeniqua Basin approximately 175km off the southern coast of South Africa. It is situated in water depths ranging from 200m to 2,000m.
Africa Energy currently owns a 49% interest in Main Street 1549, which has a 10% stake in Block 11B/12B. The remaining 51% in Main Street 1549 is owned by Arostyle Investments.
Total E&P South Africa operates Block 11B/12B with a 45% stake while Qatar Petroleum (Qp ) and CNR International respectively hold 25% and 20% interests.
Africa Energy president and CEO Garrett Soden said: “Block 11B/12B offshore South Africa contains one of the most exciting oil and gas exploration plays in the world today.
“In anticipation of the Luiperd-1X well results expected later this year, we have agreed with Impact and Arostyle to simplify and consolidate Main Street’s 10% interest in Block 11B/12B under Africa Energy.”
According to the deals, Africa Energy will initially secure the indirect financial interest held by Impact Oil & Gas.
Africa Energy will later exercise an option from Arostyle Investments to acquire the entire interest, following the completion of drilling the Luiperd-1X well.
Upon completion of the transactions, Impact and Arostyle will become ‘significant’ shareholders of Africa Energy.
The transactions, however, are subject to necessary approvals.