The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Our main owner has had some strategic changes recently:
+ Returned by the Kenya concessions (which previously provided a farm out in two stages: 1. Tullow stepped in, 50% and 2. 25% was sold to Maersk, capital which was then used to purchase the Nigeria assets.
+ In Nigeria, Africa Oil has now received a new extension of block 130. This could result in a renegotiated bond releasing several hundred MUSD.
In the last week, the share price for AOI in Stockholm has moved 17%. AOI is ECO's main owner. Obviously, the market appreciates the development of our principal owner.
AOI is the operator of our 26% part-owned block 3B/4B. In a negotiation about the terms of a farm-out, the recent development for AOI should probably not be underestimated.
AFRICA OIL ANNOUNCES THE DECISION TO WITHDRAW FROM ITS KENYA PROJECT
May 23, 2023
View PDF
VANCOUVER, BC, May 23, 2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") announces that it has submitted withdrawal notices to its joint venture partners on Blocks 10BB, 13T and 10BA in Kenya, to unconditionally and irrevocably, withdraw from the entirety of the joint operating agreements ("JOAs") and Production Sharing Contracts ("PSCs") for these concessions. The Company has concurrently submitted notices to Ministry of Energy and Petroleum, requesting the government's consent to transfer all of its rights and obligations under the PSCs to its remaining joint venture partner. View PDF version.
The carrying value of the Kenya intangible exploration assets was written down to $58.6 million at December 31, 2022, and the Company intends to further impair this value to zero.
Africa Oil President and CEO Keith Hill commented: "We have taken the decision to exit our Kenya concessions as our strategy has shifted to focus on production and high potential exploration opportunities, including our Orange Basin portfolio where we are now appraising the exciting Venus discovery, offshore Namibia.
Africa Oil is proud to have played a central role in discovering the oil fields in Kenya's South Lokichar Basin. We continue to believe these discoveries will form the basis of a significant oil producing province in the coming years with strategic value for the country. We have also had the privilege of working with our host communities on our social-focused programs and we are grateful to them for welcoming us to their midst. We thank the government of Kenya, our host communities and our joint venture partners for their support over the years and we wish them the best in taking the project forward to the next stage."
AOI, ECOs main shareholder, might in the nearby future release resources and axpose it´s hidden value.
Not just in Nigeria but also in Kenya:
https://in.investing.com/news/ongc-and-oil-india-face-competition-from-sinopec-for-50-share-in-kenyas-oilfield-3653970?fbclid=IwAR2Q88rOq3vGLPoXiOqPUeAHzGdI1-uu6ir1kCxoRYYZ3uDjY1BnkK7sbMw
TotalEnergies on target: High-risk drilling at global hotspot indicates supermajor has a huge field on its hands
Sources tell Upstream that initial results from Venus appraisal well in Namibia met expectations
22 May 2023 11:51 GMT UPDATED 22 May 2023 13:07 GMT
By Iain Esau in London
TotalEnergies has hit reservoir with a critical appraisal well on its huge, alluring Venus oil discovery offshore Namibia, with Upstream told the probe has met expectations.
Venus — and Shell’s earlier Graff discovery — generated huge excitement when it was found last year in Block 2913B of the Orange basin, with market speculation emerging at the time that it could hold 12 billion barrels of oil and many trillions of cubic feet of gas.
TotalEnergies has tried to dampen resource expectations, but its decision to spend half its 2023 exploration budget on a four-well, two-rig Namibian exploration and appraisal campaign underlines just how big Venus could be.
The drillship Tungsten Explorer is currently operating on the Venus-1A appraisal well, located in about 3000 metres of water, some 13 kilometres north of the Venus-1 discovery well, a bold step-out rarely encountered in exploration circles.
Upstream was told earlier this month that Venus-1A, which began drilling in early March, was in the reservoir and results to date are promising, according to two people with knowledge of the drilling operation.
“They are in the reservoir,” said one source, while the second person said “the well has come in on target” — a comment that implies the geology and the reservoir have met pre-drill expectations.“For such a high-risk probe, this news bodes well although the proof of the pudding will only come when the well is tested.
Vantage Drilling’s Tungsten Explorer will not carry out a flow test on Venus-1A, with this operation instead left to Odfjell’s drillship Deepsea Mira, which is due to arrive in Walvis Bay on Monday, according to marine intelligence provider VesselsValue.
Before carrying out a flow test on Venus-1A, however, the Deepsea Mira will carry out production tests on the Venus-1X discovery well.Once the Tungsten Explorer wraps up Venus-1A, it will head west to spud and possibly test the Nara-1 probe, targeting what could be a huge extension of Venus.
TotalEnergies on target: High-risk drilling at global hotspot indicates supermajor has a huge field on its hands
Sources tell Upstream that initial results from Venus appraisal well in Namibia met expectations
22 May 2023 11:51 GMT UPDATED 22 May 2023 13:07 GMT
By Iain Esau in London
TotalEnergies has hit reservoir with a critical appraisal well on its huge, alluring Venus oil discovery offshore Namibia, with Upstream told the probe has met expectations.
Venus — and Shell’s earlier Graff discovery — generated huge excitement when it was found last year in Block 2913B of the Orange basin, with market speculation emerging at the time that it could hold 12 billion barrels of oil and many trillions of cubic feet of gas.
TotalEnergies has tried to dampen resource expectations, but its decision to spend half its 2023 exploration budget on a four-well, two-rig Namibian exploration and appraisal campaign underlines just how big Venus could be.
The drillship Tungsten Explorer is currently operating on the Venus-1A appraisal well, located in about 3000 metres of water, some 13 kilometres north of the Venus-1 discovery well, a bold step-out rarely encountered in exploration circles.
Upstream was told earlier this month that Venus-1A, which began drilling in early March, was in the reservoir and results to date are promising, according to two people with knowledge of the drilling operation.
“They are in the reservoir,” said one source, while the second person said “the well has come in on target” — a comment that implies the geology and the reservoir have met pre-drill expectations.“For such a high-risk probe, this news bodes well although the proof of the pudding will only come when the well is tested.
Vantage Drilling’s Tungsten Explorer will not carry out a flow test on Venus-1A, with this operation instead left to Odfjell’s drillship Deepsea Mira, which is due to arrive in Walvis Bay on Monday, according to marine intelligence provider VesselsValue.
Before carrying out a flow test on Venus-1A, however, the Deepsea Mira will carry out production tests on the Venus-1X discovery well.Once the Tungsten Explorer wraps up Venus-1A, it will head west to spud and possibly test the Nara-1 probe, targeting what could be a huge extension of Venus.
If Nara-1 is a success, the drillship will also drill and test an appraisal well.
Vast FPSO potential
One person familiar with the drilling campaign in Namibia, told Upstream that if the western extension of Venus meets expectations, then a development could involve multiple floating production, storage and offloading vessels.
..."If (Nara) is as big as it appears to be, then it could require up to six or seven FPSO’s,” each with a capacity of at least 180,000 barrels per day.
Maggy Shino, Namibia’s Petroleum Commissioner, has suggested that the recoverable reserves discovered in Venus to date stand at about 2 billion barrels.
However, one informed source said this figure “probably” applies to the “main” part of Venus in Block 2913B, and not its potential extension into Block 2912.
TotalEnergies had not responded to Upstram’s request for comment by the time of publishing.
Upstream has spoken with two people with knowledge of the drilling, who state that they have reached the reservoir and that the well has come in at target level, indicating that the geology and reservoir have met pre-drilling expectations.
It looks like Lundin's exit from Africa Oil went without any major reaction. AOI is down 1% in Sthlm.
On chat pages it is discussed whether the management will now once again implement the buyback program in AOI.
For ECO, Africa Oil is still a major shareholder with interesting news in its feed:
AOI may get an extension to its Nigeria concessions at the end of May. This can provide a renegotiated bond that solves several hundred million USD to use in the business. As we all know, the farm-out process for 3b/4B is underway at the same time as the rigs are working on the Venus Concession.
From another telegram in Sweden (Google translate):
AFRICA OIL
The Lundin family has sold all shares in Africa Oil - Di (Finwire)
2023-05-17 06:51
The Lundin family has sold its holding in the oil and gas exploration company Africa Oil, which is a favorite of small savers. This is stated by Adam Lundin for Dagens industri.
According to Adam Lundin, the withdrawal from Africa Oil has been gradual since November last year. Before the divestment, the family owned 5.1 percent of the shares in Africa Oil. The low percentage was one reason why the family chose to withdraw.
"This a position that became quite insignificant for us as we were not the largest shareholder and did not have strategic control. Now we felt that we had an opportunity to consolidate our portfolio without harming other shareholders in Africa Oil", says Adam Lundin.
He adds that the strategy is generally to move away from exploration towards production and cash flow instead. The other oil companies IPC, Aker BP and Shamaran Petroleum have that, Adam Lundin points out.
Ian Lundin will appear before the court in Stockholm regarding the events in Sudan regarding the AOI owned concessions there. The trial has been postponed for a long time, but now a decision is approaching.
As stated below, what are the path of the other actors, former CEOs? Will Kieth Hill be replaced? Or business as usual?
Used Google translate from a Swedish telegram:
"Fidelity Flags Up in Africa Oil (Finwire)
2023-05-16 17:00
The asset manager Fidelity, FMR, has increased its holding in the oil and gas company Africa Oil to 8.19 percent of the capital and votes in the company. This is evident from a flagging message."
Will be interesting to follow the details, Kieth Hill just bought 800 000 shares in AOI. What path do the other former CEOs choose, Hempstall et al?
"Southern Africa’s exploration circles are abuzz with talk of Shell achieving super-charged oil flow rates from production tests it has been running on its ground-breaking Graff-1x discovery well offshore Namibia.
Namibia is probably the world’s top exploration hot spot, as two discoveries by Shell — Graff and Jonker — and TotalEnergies’ Venus find pave the way for a surge of industry interest in the long-neglected Orange basin and set the scene for what could be at least three major projects.
No full-scale oil and gas production tests were carried out when the original discovery wells were drilled, so both Shell and TotalEnergies are in the midst of carrying out these vital operations which will help determine if their deepwater finds are commercially viable.
Namibia is a core exploration play for Shell and, according to research carried out by Barclays, could account for up to 6% of the supermajor’s market capitalisation if it finds 8 billion barrels of oil in place with a value of $10 per barrel of oil equivalent.
Using the semi-submersible rig Deepsea Bollsta, Shell re-entered the Graff-1x well in Block 2913A in early March and it is understood that drill stem tests carried out in recent weeks generated surprising results, with oil flow rates far exceeding expectations.
One well-placed industry source said that when drillers opened the downhole choke, oil “came at them like a train”, which meant care had to be taken to control the flow.
Describing one of the tests, the source said the flow rate was “big”, with the oil coming “hard and fast”.
Commenting on the drilling operation, a Shell spokesperson said: “We have successfully re-entered the Graff-1X well for appraisal and testing. Interpretation of the test results is ongoing with initial results available in June.”
Drill stem tests are used to assess a reservoir’s pressure and permeability and can last minutes or days.
They are used to determine pressures in a reservoir, including how quickly pressure builds up once the oil has been flowed to the drilling rig.
It is not known how many separate tests Shell has carried out to date on Graff-1x, exactly when they were undertaken or whether a high flow rate inevitably means a discovery is commercial.
However, two other exploration-well watchers confirmed that hydrocarbons flowed so surface — which is a positive sign — noting that gas flares were reported from the semisub in late April and early May.
To date, it is understood that drill stem tests were carried out between 30 April to 1 May and between 3 and 7 May.
One source said the flaring is “a good indication that the Graff reservoir flows, which is great”.
However, another source noted that while good flow rates would be welcomed by Shell, Graff's geology is more complicated than that of Venus or Jonker, which could create development challenges.
A fourth source also highlighted that, assuming a development is commercial, the supermajor wi
...A fourth source also highlighted that, assuming a development is commercial, the supermajor will still have to find a way to deal with Graff's gas, while at the same time commercialising its oil resources.
Once the Deepsea Bollsta wraps up work at Graff-1x it will likely mobilise to drill another exploration well in the block — perhaps on the Lesedi prospect — although Shell has not confirmed this.
Graff-1x and the nearby La Rona-1x discovery are both Upper Cretaceous finds, while Jonker-1x is a Middle Cretaceous reservoir, which TotalEnergies hit with its Venus-1x probe in adjacent 2913B.
Shell — headed by chief executive Wael Sawan — and QatarEnergy both have 45% stakes in Block 2913A and adjacent 2914B, with Namcor on 10%."
https://www.upstreamonline.com/exclusive/-like-a-train-oil-flows-at-super-charged-rate-from-shell-s-ground-breaking-namibia-probe/2-1-1450289?fbclid=IwAR02TDspwPaqK7HhIpK0lpu4ga50x2jF2zC1_tOjK_KKnXAXD31TIa8QEnk
After the market close on Friday, AOI announces that it is continuing and increasing investment in the ongoing drilling around the Venus-1 discoveries.
https://stockhouse.com/news/press-releases/2023/04/28/africa-oil-announces-further-investment-in-impact-oil-gas-and-share-capital-and
We are in the phase of negotiations. Everything has a price.
News will tell.
This is an old article from 2022. Just want to show that the stakeholders are quick and opportunistic.
As is now known, Impact has completed an internal financing round for the current well, but not for the upcoming one west of Venus-1.
Drilling started at the end of February and continues. Will the parties in our 3B / 4B block sign a farm out deal before or after the drilling results? In some weeks we know. A deal reduces risk and gives investors a clear framwork for their investments. What will be the new price for that, CAD 0,6?
"Impact is currently in talks with investors to raise up to $100 million to fund the appraisal, the sources said.
But at the same time, the company is preparing to launch the sale process for its stake and has already held early discussions with several potential buyers, the sources said."
https://www.oedigital.com/news/497088-report-impact-oil-gas-eyeing-sale-of-stake-in-namibian-offshore-block-containing-venus-1x-discovery
https://www.proactiveinvestors.com/companies/news/1008599/africa-oil-and-eco-atlantic-look-to-blue-sky-as-new-estimates-puts-spotlight-on-a-large-prize-1008599.html
Africa oil and Eco atlantic have recently successfully completed environmental applications in other blocks and had them approved in South Africa. It is perhaps not a challenging assumption that an approval in that process is woven into the farmout agreement as a condition for the farmout agreement.
It will be interesting to see the "new normal" share price level after the agreement is signed.
Strike three: Shell scores its largest oil discovery yet in world’s top exploration hotspot
The Jonker-1x probe hit light oil, with Upstream told it is huge find, better than the supermajor's previous discoveries in same blockUPDATED 6 March 2023 11:32 GMT
By Iain Esau in London
Shell has made a barnstorming offshore oil discovery in Namibia’s prolific Orange basin that looks to be far bigger than its two earlier oil finds in probably the world’s top exploration play.
QatarEnergy and state-owned Namcor, Shell’s partners, today confirmed Upstream’s recent exclusive that the Jonker-1x probe had hit light oil in Block 2913A, but did not go into detail.
However, informed sources told Upstream that the Jonker discovery is jumbo-sized, fully justifying Shell’s decision to focus on a new geological play in the block as opposed to going back to drilling in the area of last year’s Graff-1x and La Rona-1x discoveries.
One knowledgeable source said the exploration fraternity is abuzz with talk that the Jonker prospect could house “over 1 billion barrels of recoverable oil”.
Another seasoned explorer said this estimate was utterly reasonable: “This is entirely possible.”
Namcor, Namibia’s state oil company, said today that Jonker-1x probe hit light oil, adding that it is a “major” oil discovery that will be appraised.
Jumbo find: Shell's Jonker-1x discovery is located in a prolific part of Namibia's Orange basin. Photo: Map NAMCOR
“The acquired data is currently being evaluated and further appraisal drilling is planned to determine the size and recoverable resources potential of the discovery,” said Namcor.
Odfjell’s semi-submersible rig Deepsea Bollsta drilled the exploration well to a total depth of 6168 metres in a water depth of 2210 metres.
The semisub is now on location at Graff-1x, according to marine intelligence provider VesselsValue, and is expected to re-enter this well to carry out a drill stem test.
Located about 270 kilometres offshore, Jonker-1x is the third successful exploration well drilled on the block by Shell in the last year, within a 100% success rate.
One exploration hand told Upstream last week that Jonker-1x “came in big” in the main Cretaceous-age target, following on from an earlier Upstream exclusive that a shallower oil pay was also intercepted in late January.
Shell’s main objective was a Middle Cretaceous reservoir of Albian age — the same reservoir that was so successful at TotalEnergies’ Venus-1x discovery, just across the border in block 2913A — instead of the Upper Cretaceous discoveries made at Graff and La Rona.
Supporting the view is another seasoned explorer who understands that Shell looks to have hit oil in “multiple horizons”.
Victoria Sibeya, Namcor’s executive in charge of upstream exploration, said: “The encouraging results from the well are a geological testimony of the significant hydrocarbon potential in the deep-water play of the Orange basin.
"....Victoria Sibeya, Namcor’s executive in charge of upstream exploration, said: “The encouraging results from the well are a geological testimony of the significant hydrocarbon potential in the deep-water play of the Orange basin.
“We look forward to the appraisal activities and our collaborative relationship with our joint venture partners and our shareholder, the government of Namibia, to fully assess the commerciality of this discovery”.
Namcor managing director Immanuel Mulunga, expressed “delight” in being able “to announce this third oil discovery after the success of the Graff-1x and Venus-1x discoveries by Shell and TotalEnergies in 2022”.
“This discovery has proven the exciting and world-class potential of the deep-water Orange basin,” he said.
Shell — headed by chief executive Wael Sawan — and QatarEnergy both have 45% stakes in Block 2913A and adjacent 2914B, with Namcor on 10%."
https://www.upstreamonline.com/exclusive/strike-three-shell-scores-its-largest-oil-discovery-yet-in-world-s-top-exploration-hotspot/2-1-1414274?fbclid=IwAR0wCuG-aDn4go_t1S744PDYGOM9ezCjDSm9ZKiG_5ZRt9LvQdcbSLJKpT0