Block 2B is located in the Orange Basin and covers an area of 3,604 square kilometers about 300 kilometers north of Cape Town with water depths ranging from 50 to 200 meters. Over the main area of interest in the block, the A-J rift graben, water depth ranges from 140 meters to 160 meters. View Block 2B Presentation
Oil was discovered and tested by Soekor in the A-J1 borehole drilled in 1988. Thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters. The well was tested and flowed 191 barrels of oil per day of 36 degree API oil from a 10 meters sandstone interval at about 3,250 meters. Significant upside potential within six prospect areas at depths of up to 800 meters shallower than the reservoirs in A-J1 has been identified on the 686 square kilometers of 3D seismic data that covers the whole of the A-J graben area. Follow-up wells will target this potential.
The A-J graben is a typical rift basin, similar to others in which major oil accumulations have recently been discovered by Africa Energy’s technical team in Uganda and Kenya. The oil was generated in lacustrine source rocks that are present in the deepest parts of the basin. The oil migrated and accumulated in fluvial and lacustrine sandstone reservoirs around the basin flanks.
There is also significant potential in other rift graben to the north and south of the A-J graben and potential for significant gas discoveries in the shallower sequences above the rift graben succession over the whole block.
Under the terms of the Block 2B Exploration Right, the Company and its partner have fulfilled the obligations of the Second Renewal Period, which was set to expire on February 20, 2020. Prior to expiry, the Block 2B joint venture partnership applied for entry into the Third Renewal Period, which is the last period under the Block 2B Exploration Right. The Company has proposed to include an obligation to drill a well in the Third Renewal Period, which is for a period of two years from the date the application is approved by the South African government. In accordance with the terms of the Block 2B Exploration Right, the Company is required to relinquish 15% of the current exploration area.
Africa Energy holds a 90% participating interest and is the operator of Block 2B. Crown Energy AB indirectly holds the remaining 10% participating interest.
In February 2020, the Company signed two farmout agreements whereby it will transfer a 50% and 12.5% interest in Block 2B to Azinam Limited and Panoro Energy, respectively. Closing of the farmout transactions is subject to standard conditions, including approval by the South African government. Following completion, the Company will retain a 27.5% interest in Block 2B and be carried through the next exploration well, Gazania-1, which is expected to spud in the second quarter of 2021.