|Africa Energy Corp.
|Crown Energy AB
Block 2B is located in the Orange Basin and covers 3,062 square kilometres off the west coast of South Africa 300 kilometres north of Cape Town with water depths ranging from 50 to 200 meters. Oil was discovered and tested on the block by Soekor in the A-J1 borehole drilled in 1988. Thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters. The well was tested and flowed 191 barrels of oil per day of 36 degree API oil from a 10 meter sandstone interval at about 3,250 meters. The 686 square kilometre 2013 3D seismic data confirmed the up-dip prospectivity of the A-J1 discovery and significant further prospectivity up to a total of 1 billion barrels of oil on the Block 2B licence area.
Under the terms of the Azinam’s farmout agreement with Africa Energy Corp., Azinam has acquired a 50.0% participating interest in Block 2B and become the Operator of Block 2B on behalf of the joint venture partners. Africa Energy Corp. will retain a 27.5% participating interest in the block. Simultaneously, Panoro Energy has become a 12.5% participating interest holder on the licence. Crown Energy AB indirectly holds the remaining 10% participating interest.
Azinam and the other licence partners plan to drill up-dip of the A-J1 oil discovery, with the well targeting 349 million barrels of oil (Best Estimate Gross Prospective Resources). The Block 2B area has the potential to provide the first major oil production offshore South Africa, and the first oil production in the Orange Basin.