Impact Oil and Gas, an Africa-focused exploration company backed, by among others, private equity firm Helios Investment Partners, has signed two deals with French oil major, Total. Both deals, which involve selling significant portions of a couple of the firm’s assets, raise the number of oil majors with whom the the firm has partnered to four, following previous farm-out deals with CNOOC, Exxon and Statoil.
In the first of the two deals, Total E&P Namibia is acquiring 70% of Impact’s interests in Block 2913B which is located off Namibia adjacent to the South African maritime boundary. Impact first invested in the Block, which covers over 8,000 square kilometers at water depths of between 2,500 metres and 3,250 metres in early 2014. The sale to Total has already received the necessary approvals, giving the firm a 70% interest, with Impact retaining a 20% stake and the balance being held by NAMCOR, the state-owned oil company.
The second farm-out sees total acquiring 77.78% of Impact’s interests in Orange Basin Deep TCP, South Africa, once an Exploration Right is granted over the area. Orange Basin TCP lies off shore on the west coast of South Africa, covering over 15,000 kilometers at water depths of between 2,700 metres and 4,250 metres. On completion of the farm-out, which is conditional upon certain government approvals, Impact will retain a 22.2% stake in the asset.
Helios first backed Impact in August 2014, taking a 13.6% stake in the company and helping fund the completion of pending licence acquisitions and early work programs on Impact’s asset portfolio. Impact Oil and Gas was founded in 2009 as an Africa-only, pure exploration company focused on building an attractive group of exploration assets and securing large, independent oil companies as partners. The company’s current portfolio covers over 90,000 square kilometers across South Africa, Namibia, Gabon, Senegal and Guinea Bissau.
Source: Asoko Insight