Impact Oil & Gas, a privately-owned, Africa-focused, exploration company, has announced an Open Offer to existing shareholders to subscribe for new Ordinary shares in the Company, to raise up to $60 million. The capital raised shall be used towards funding Impact’s participating share (held through its wholly owned subsidiary, Impact Oil and Gas Namibia (PTY) Ltd) of the Venus appraisal programme, in Blocks 2913B, offshore Namibia.

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Background

During 2021, Impact Oil & Gas continued to progress its exploration activities in its portfolio of offshore licences to the south and west of Africa. Following the spudding of Venus-1X in Block 2913B, offshore Namibia in November 2021, Impact’s Venus prospect, was successfully drilled, and in February 2022 the discovery of a world class light oil and associated gas field, exceeding Impact’s pre-drill expectations, was announced. The Venus-1X discovery well was drilled by TotalEnergies on behalf of the joint venture group comprising TotalEnergies (40%), QatarEnergy (30%), Impact (20%) and state owned NAMCOR (10%). The Venus discovery sits in the Orange Basin, approximately 290 kilometres off the coast of Namibia, in the deep offshore. The well was drilled to a total depth of 6,296 metres, by the Maersk Voyager drillship, and encountered a high quality, light oil-bearing sandstone reservoir of Lower Cretaceous age, with 84 metres of net oil pay.

Later this year, the joint venture will return with a drillship to drill and test one appraisal well and re-enter the Venus-1X exploration well to run a test. The joint venture also expects to acquire additional seismic in the adjacent Block 2912, which contains the western extension of the Venus field. The anticipated work programme, if successful, will enable the joint venture to press ahead with an early development programme and to better understand the scale of the Venus field and the extent to which the Venus accumulation extends west, into the adjacent Block 2912.

Reasons for the Open Offer

Following the light oil and associated gas discovery in Block 2913B, Impact is now preparing to fund its share of an appraisal programme on this block and continue with its exploration activity on Blocks 2913B and neighbouring Block 2912, including the acquisition of 3D seismic.

Siraj Ahmed, CEO of Impact Oil & Gas, commented:
“We are excited to be preparing for the appraisal of the world class light oil and associated gas discovery in Venus-1X, expected to commence only seven months after the initial discovery was announced. This is remarkable progress that reflects the commitment of the joint venture to accelerate the de-risking and commercialisation of the Venus discovery. We are grateful to our shareholders, who have steadfastly supported Impact through a difficult period in the industry, and are grateful for their continued support in this capital raise