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Calima Energy has expanded its asset portfolio in Africa through the award of a Petroleum Agreement for offshore Block 2813B, covering an area of 5,344 km2 in the Orange River Basin of Namibia. The award was made following an application to the relevant authorities representing the Government of Namibia.
The agreement has an initial investment term of four years. During the first year of the initial term the Company will undertake an evaluation of the existing data in, an around, the block. Over the four years of the initial term Calima has committed to acquire 2D or 3D seismic data and undertake a detailed prospectivity review. The investment obligations associated with the agreement are comfortably within the Company’s financial capabilities.
Calima’s core focus in the short term remains upon the Montney Formation in British Columbia, where the Company plans to drill several wells later in the year. This investment in Namibia provides shareholders with an interest in a high-profile emerging hydrocarbon province alongside major oil companies. Together with Calima’s other portfolio assets in Western Sahara and Comoros, this project has the potential to generate real shareholder value with only modest investment of capital.
Namibia has recently experienced a significant upsurge in industry interest following some encouraging drilling results which demonstrated the presence of thick oil-prone, mature source rocks and high-quality sandstone reservoirs.
Over the last six months Exxon, Total, Tullow, ONGC, Africa Energy Corporation and BW Offshore have all farmed-in to projects offshore Namibia and over the next twelve months at least four deepwater wells are expected to be drilled. Of direct relevance in supporting the value proposition offered by Block 2813B, Total farmed-in to the acreage immediately south in October 2017 and, over the next 12 months, Shell are reported to be drilling two wells in acreage immediately to the southeast.
Alan Stein, Calima’s Managing Director commented:
‘We are tremendously excited by the exploration potential of this acreage and are delighted to have been able to secure the opportunity at a time of increasing industry interest and activity in the region. This offers us participation in a world-class exploration play with only a modest initial investment in new seismic data. There are a number of exploration wells due to be drilled in adjacent acreage which will provide valuable information to assist Calima’s forward investment strategy. The initial four-year period for seismic acquisition and evaluation complements our core activities in Western Canada where the Company will be drilling several wells in its Montney project later in the year.’
Source: Calima Energy