Africa Oil Corp has announced the company participation in a USD 95.0 million Open Offer by Impact Oil & Gas Limited a privately–owned and African–focused exploration company. The capital raised shall be used towards funding Impact’s participating share of the multi-well drilling and testing programme in Namibia to further evaluate and appraise the Venus discovery; a world class, light-oil and associated gas field announced in February 2022¹. 

Africa Oil is the only publicly-listed Independent E&P company with exposure to the Venus discovery through its strategic 31.1% shareholding in Impact which in turn holds a 20.0% participating interest share in Block 2913B (PEL 56) and an 18.9% participating interest share in the adjacent Block 2912 (PEL 91).

The Company has made an investment of approximately USD 31.4 million and following this placement, Africa Oil’s shareholding in Impact has increased to 31.1% from 30.9%. The Company’s closing cash balance as at December 31, 2022, was USD 199.7 million.

The proceeds from the Open Offer is intended to be used by Impact to fund its activities in 2023 including:

• The appraisal and development programme on Block 2913B, in Namibia, following the Venus discovery, including the appraisal well (Venus-1A) which spud on March 4, 2023, a re-entry of the Venus-1X discovery well and testing of both wells.
  
  
• Exploration activity on the neighbouring Block 2912 to determine the extent of the Venus discovery, including an exploration well, Nara-1X, and testing on the anticipated westerly extension of Venus into the neighbouring block.

If Nara-1X is successful, it will be followed by the Nara-1A appraisal well and extended 3D seismic survey on this block.