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Africa Oil boosted as Total strikes latest new discovery in Namibia

Published 2024-02-08, 06:10 a/m
© Reuters Africa Oil boosted as Total strikes latest new discovery in Namibia
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Proactive Investors - Africa Oil Corp (TSX:AOI) has exposure to what chief executive Roger Tucker described as “a new fairway opportunity” amid TotalEnergies (EPA:TTEF) discovery in the Mangetti-1X well, offshore Namibia.

The Canadian firm has a material economic interest in the new discovery via its 31.1% shareholding in Impact Oil & Gas, which in turn holds a 20% stake in the TotalEnergies-led project.

Mangetti-1X has intersected hydrocarbon-bearing intervals in the Mangetti fan prospect, which is a similar but separate system to the Venus oil discovery (unearthed previously by the exploration joint venture).

This latest well also achieved its secondary objective, which was to intersect and appraise the Venus system in this location which is a northern extension area of the original discovery.

Africa Oil told investors that Mangetti has the potential to add additional recoverable resources to the project, and, that Impact and its partners are now working to determine the next step in the evaluation process.

"The positive results of the Mangetti-1X well present us with a new fairway opportunity, potentially adding a new recoverable resource base on Block 2913B,” Roger Tucker said in the Africa Oil statement.

“Our involvement in Block 2913B continues to be exciting, with further work underway to understand the potential of Mangetti, alongside the Venus-2A appraisal well, currently drilling.”

Elsewhere, the company noted a separate update from TotalEnergies related to the Akpo West field offshore Nigeria – where, as operator, the French major has now confirmed the start of production.

Africa Oil holds an economic interest in Akpo West via a 50% shareholding in Prime Oil & Gas, which in turn owns a 16% stake in the field.

The new operation at Akpo West has started up using the existing Akpo floating production storage and offloading (FPSO) facilities, which has been running since 2009 and last year handled 124,000 barrels of oil equivalent per day.

Akpo West is expected to produce some 14,000 barrels of condensate per day, followed by 4 million cubic meters of gas per day starting in 2028, Africa Oil noted.

“Akpo West presents us with advantaged and high netback production in a low operating cost and with a low emission project,” Rogers added.

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