08 Feb Africa Oil Part Of Significant Discovery In Outeniqua Basin, Offshore South Africa
Through its 35% stake in Africa Energy and 30% stake in Impact Oil, Africa Oil Corp. (TSXV – AOI) was part of a significant hydrocarbon discovery in the Outeniqua Basin, 175 km off the southeast coast of South Africa.
The highly anticipated Brulpadda-1AX well on Block 11B/12B encountered a total of 57 meters of net gas condensate pay over two Lower Cretaceous high-quality reservoirs. Unfortunately, Africa Oil and the operator, Total, did not provide much more technical or reserve/resource potential.
Following the success at Brulpadda and confirmation of the play’s potential, the Block 11B/12B partners plan to acquire 3D seismic this year, followed by up to four exploration wells.
Keith Hill, Africa Oil’s President and CEO, commented, “We are very pleased to see the first well in our 2019 exploration portfolio campaign result in a major basin opening gas-condensate and oil discovery. This is an important new discovery as the potential of the Outeniqua Basin has long been considered to have huge upside potential and the drilling of the Brulpadda well was highly anticipated across the industry.”
I was hoping for a stronger share price reaction but ultimately, Africa Oil only has a 3% indirect interest in the play.