VANCOUVER, BC, Oct. 28, 2020 /CNW/ - (TSX: AOI)
(Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("AOI", "Africa
Oil" or "the Company") is pleased to announce a significant gas
condensate discovery on the Luiperd prospect located on Block
11B/12B
offshore South Africa. This
discovery follows the adjacent play-opening Brulpadda discovery in
2019, which proved a significant new petroleum province in the
region. The Company holds an indirect interest in the project as a
result of its equity interests in Africa Energy (31.3%) and Impact
Oil & Gas Limited (31.1%). View PDF Version
Garrett Soden, Africa Energy's
President and CEO, commented, "We are thrilled to announce the
second consecutive discovery on Block 11B/12B offshore
South Africa. We congratulate
Total as operator for drilling the Luiperd-1X deepwater well safely
and efficiently during the coronavirus pandemic and austral winter
season. The Luiperd discovery reconfirms this world-class
exploration play with substantial follow-on potential. The net pay
encountered in the Luiperd target objective is significantly larger
than the main reservoir at last year's Brulpadda discovery. The
Block 11B/12B partners are conducting a drill stem test to
measure flow rates over the next few weeks. Due to the success at
Luiperd, the joint venture has decided to proceed with development
studies and engage with authorities on the commercialization of gas
instead of drilling another exploration well in this program."
The Luiperd-1X exploration well was drilled in approximately
1,800 meters of water by the Odfjell Deepsea Stavanger
semi-submersible rig to a total depth of about 3,400 meters. The
well targeted the hydrocarbons potential in a mid-Cretaceous aged
deep marine sequence where fan sandstone systems are developed
within combined stratigraphic/structural closure.
The well encountered 73 meters of net gas condensate pay over a
mid-Cretaceous high-quality reservoir interval and did not
encounter the water contact. Following a comprehensive coring and
logging program, the Block 11B/12B joint
venture is now testing the well to assess dynamic reservoir
characteristics and deliverability.
The Luiperd discovery is located on Block 11B/12B in the
Outeniqua Basin 175 kilometers off the southern coast of
South Africa. The block covers an
area of 19,000 square kilometers with water depths ranging from 200
to 1,800 meters.
Africa Energy holds 49% of the shares in Main Street 1549
(Proprietary) Limited ("Main Street"), which has a 10%
participating interest in Block 11B/12B. Africa
Energy announced on August 24, 2020,
that it has entered into definitive agreements ("Agreements") to
increase its effective interest in Block 11B/12B offshore
South Africa from 4.9% to 10%,
subject to certain consents and approvals, by consolidating the
100% interest in Main Street.
Africa Oil has a direct 31.3% shareholding in Africa Energy and
an indirect interest through its 31.1% shareholding in Impact Oil
and Gas Limited, that is due to receive 509,092,771 Africa Energy
shares in consideration for the transfer of its indirect financial
interest in Main Street. Once the transactions contemplated under
the Agreements have closed, including an issue of 64,455,916 shares
to Arostyle Investments (RF) (Proprietary) Limited, which holds 51%
of the shares in Main Street, it is expected that Africa Oil's
shareholdings will represent an effective interest of 29.9% in
Africa Energy.
Keith Hill, Africa Oil's
President and CEO, commented, "We are very pleased to see the
second significant Block 11B/12B discovery
that reiterates the world-class potential of the Outeniqua Basin.
This success is a strong endorsement of our equity investment
strategy, that has provided our shareholders with material
interests in very exciting oil and gas provinces, through a
portfolio approach that limits financial exposure to the
Company."
Africa Oil Corp. is a Canadian oil and gas company with
producing and development assets in deepwater Nigeria; development assets in Kenya; and an exploration/appraisal portfolio
in Africa and Guyana. The Company is listed on the Toronto
Stock Exchange and on Nasdaq Stockholm under the symbol
"AOI".
This information is information that Africa Oil Corp. is obliged
to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out below on October
28, 2020 at 8:15 a.m.
Stockholm Time.
Forward Looking Information
Certain statements and information contained herein constitute
"forward-looking information" (within the meaning of applicable
Canadian securities legislation). Such statements and information
(together, "forward looking statements") relate to future events or
the Company's future performance, business prospects or
opportunities.
All statements other than statements of historical fact may be
forward-looking statements. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect,
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve
known and unknown risks, ongoing uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. No assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. Actual results may differ materially from those
expressed or implied by such forward-looking statements.
SOURCE Africa Oil Corp.