Impact Oil and Gas announced on Monday it will separate its Namibian exploration and development business from its South African exploration portfolio in a corporate reorganisation backed by principal shareholders Deepkloof and Meren Energy.
Impact will transfer its South African licences and related assets to IOG Energies, a newly established subsidiary of Deepkloof, to create two standalone entities, each separately focused on Namibia and South Africa.
“The reorganisation is an important step for Impact and positions the company to be fully funded through to first oil on the Venus field development, while creating a structure to attract investment into the South African assets. By aligning shareholder interests and leveraging the experience of the same highly experienced team, we are able to maximise value from Namibia,” said Impact CEO Siraj Ahmed.
Following the close of the transaction, Impact’s primary assets in Namibia will be its 9.5% participating interests in Block 2912 in the offshore Orange Basin, and the adjacent Block 2913B, which contains the Venus discovery.
Blocks 2912 and 2913B are operated by TotalEnergies with interests of 42.475% and 45.25%, respectively. The other partners in the blocks are QatarEnergy with 33.025% and 35.25%, respectively, and NAMCOR with 15% and 10%.
The South African portfolio includes interests in the Area 2 block and Transkei & Algoa block offshore eastern South Africa, as well as the Orange Basin Deep block off the country’s western coast.