18 Sep 2014 – Impact Oil & Gas, an Africa-focused exploration firm, is in talks to sell a majority stake in its Namibian asset, Block 2913B, to Shell, a source has told this news service.
Impact owns 85% of Block 2913B and it will potentially be left with 25% to 30% after the farm-out, the source said. State Oil Company NAMCOR and indigenous Namibian company Grisham Assets own 10% and 5%, respectively. Impact holds operatorship of the block.
Impact acquired its stake in Block 2913B in January as part of its GBP 8m buyout of Black Star Petroleum, according to Mergermarket data. Impact also gained a 90% interest in Block 4B in Guinea Bissau through the deal.
Shell began operating in the Namibia earlier this year, when it acquired 90% stakes in two exploration blocks – 2913A and 2914B – in the Orange basin from Signet Petroleum.
Block 2913B covers 9,000 square kilometers in a location 300km offshore southernmost Namibia, immediately adjacent to the South Africa maritime boundary, and within 3,000m of water.
Impact is assessing 2D seismic data of the block, which it expects to complete by the end of the year.
“Impact needs to find a partner with capital and the technical expertise for what would be extremely deep water drilling,” an industry source said.
Shell declined to comment. Impact did not respond to a request for comment.
Impact also has assets in South Africa and Gabon. Its legal adviser is Bowman Gilfillan.
by Katie McQue