Hosken Consolidated Investment (HCI) announced yesterday the farm-out agreement between its 49%-owned Africa-focused associate, Impact Oil & Gas, and TotalEnergies EP Namibia B.V. had become unconditional and had been implemented.
Impact Oil & Gas holds exploration rights in blocks 2912 and 2913B off the coast of Namibia, known as the Venus discovery, which are considered some of the most significant oil finds in recent decades.
This comes after Impact Oil & Gas announced earlier this year it had farmed out its interests in Blocks 2912 and 2913B offshore Namibia to TotalEnergies EP Namibia B.V. and received an associated $99 million (R1.74 billion) cash payment, following receipt of relevant regulatory approvals from the government of Namibia and joint venture partner consents.
Siraj Ahmed, Impact CEO said they were pleased to have received approval from the Government of Namibia for their farm-out and look forward to continuing our journey towards first oil in Namibia.
“This is a transformational transaction for the company, securing Impact’s future participation in this exciting play. Additionally, this transaction, through the carry, gives Impact a funded exposure to further significant exploration opportunities in the Blocks, starting with the recently spud Tamboti-1X well,” Ahmed said.
“We look forward to continuing our longstanding partnership with NAMCOR, TotalEnergies and QatarEnergy, and would like to thank the TotalEnergies team for their ongoing collaboration.”
The sale involved: a 9.39% undivided participating interest in Block 2912 and a 10.5% undivided participating interest in Block 2913B.
The transaction also provided Impact with a carry loan for its remaining development, appraisal and exploration costs until the date on which Impact received the first sales proceeds from oil production on the blocks.
The carry loan was repayable from a share of Impact’s after-tax cash flows, and net of all joint venture costs, including capital expenditures, from production on the blocks.
HCI’s share price increased 2.74% to R193.52 yesterday morning.
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