Page 8 - AfrOil Week 08 2020

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SOUTH AFRICA
CANADA’S Africa Energy said on February 25 that it had brought two new companies on board for the exploration of Block 2B, which lies offshore South Africa.
In a statement, the company said it had con- cluded farm-out agreements with AziNam, a Bermuda-registered company that is active in neighbouring Namibia, and Panoro Energy, a Norwegian firm that is carrying out projects in Brazil and several African countries. Together,
these agreements provide for Africa Energy to reduce its stake in the joint venture set up to explore and develop the block from 90% to 27.5%.
One of these agreements calls for most of the
equity in play to go to AziNam, which will end
up with a 50% stake in and operatorship of the project. AziNam has already paid a deposit of $1.5mn to Africa Energy and will settle part of
the bill by paying another $500,000 in cash. 
 It also quoted Milholland as saying that the deal would help COPL move forward with develop- ment work at the Nigerian block.
“This loan, which reflects my confidence in the company, will generate the necessary funds so we can conclude the additional financing measures needed to commence appraisal drill- ing of OPL 226 within our targeted timeframe of 2020,” he said. “Together with our joint venture partner, we continue to be focused on conclud- ing the placement of the OPL 226 performance bond by our Nigerian affiliate and progressing the operational plan for the commencement of operations.”
The Canadian company has said it hopes to drill its first appraisal well at OPL 226 this year, assuming that it obtains the financing and regu- latory approvals it needs to do so. It would then proceed to bring the field on stream by using an extended well test to establish an early produc- tion system.
This, in turn, would pave the way for the drilling of two or three more appraisal wells to support a full-field production system at the
NOA structure within OPL 226. All three or four of the wells drilled at the offshore block will see production peak at 6,000-10,000 barrels per day (bpd).
COPL did not say how much it might cost to implement the early production system and full- field production system plans, but it did say that it was seeking financing from multiple sources. “The company is currently in discussions with strategic investors, as well as global service pro- viders, to secure financing for the placement of the OPL 226 performance bond and for the provision of services for the early production scheme and other project financing costs,” it stated.
The Canadian firm is participating in the OPL 226 project through its partnership with Shoreline Energy International of Nigeria. Together, the two companies have established a joint venture known as Shoreline Canadian Overseas Petroleum Development (ShoreCan), and that joint venture has acquired an 80% stake in Essar Exploration and Petroleum Ltd (Nige- ria), which owns a 100% stake in OPL 226.™
Africa Energy in farm-out deals for Block 2B with AziNam, Panoro
Block B2 lies in the Orange basin (Image: Africa Energy)
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w w w. N E W S B A S E . c o m Week 08 26•February•2020