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Offshore exploration licence containing a discovery with contingent resources ready for appraisal well drilling. The licence is considered to have great potential due to additional prospects within the licence area. The Company has entered into a farm-out agreement which means that remaining licence shares are financed for well drilling.
Exploration Block 2B in South Africa is located offshore on the Atlantic coast just south of the border with Namibia. A small oil discovery was previously made in the exploration area. As a result, the next step in this licence will be to drill an appraisal well to ascertain the size, extent, and production volumes, and thus establish that this is a commercially strong oil project.
An analysis of the A-J1 discovery was completed in June 2015, which found that the reservoir contains contingent 2C resources totalling 37 million barrels, with an average of 56 million barrels of oil and considerable potential beyond that with up to 118 million barrels of oil in the form of 3C resources.
Crown Energy owns a 10 per cent interest and the farm-out agreement stipulates that the licence partner Africa Energy will pay for all costs associated with the next drilling within the licence area, including additional well testing. Africa Energy, which owns the remaining 90 per cent, is the licence operator. In February 2018, the authorities in South Africa approved an application to enter the next two-year phase, which includes drilling. The operator has prepared all the technical work required to identify the optimal location for drilling an appraisal well. The operator has also commenced logistics activities, including early procurement of required equipment.
License: Block 2B, South Africa
Operator: Africa Energy Corp
Share (working interest): 10%
Other partners: Africa Energy Corp (10%)
Block 2B - South Africa
Gross contigent resources 2C (mmboe)
Gross prospective resources (mmboe)
Total resources mmboe
Net WI (mmboe)
Crown Energy's working interest (WI) is 10.%
All resources in mmboe (Million Barrels of Oil Equivalents). Crown Energy calculates reserves and resources according to Society of Petroleum Engineers Petroleum Resources Management System of 2007.