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Wednesday, January 10, 2024
Impact Oil & Gas Limited announces the signing of a farmout transaction related to its interests in Blocks 2912 and 2913B offshore Namibia with TotalEnergies EP Namibia B.V. The transaction includes a full carry, on Impact’s retained interest for all joint venture costs, with no cap, through to receipt of the first sales proceeds from first oil production.
Impact’s wholly owned subsidiary has signed a farmout agreement with TotalEnergies EP Namibia B.V., for the sale of a 9.39% undivided participating interest in Block 2912, Petroleum Exploration License 91, and a 10.5% undivided participating interest in Block 2913B, Petroleum Exploration License 56. On completion of this transaction, Impact will hold a 9.5% interest in each of Blocks 2912 and 2913B.
Impact will also be reimbursed in cash for its share of the past costs incurred on the Blocks, net to the farmout interests, which is estimated to be approximately $99 million.
This Agreement provides Impact with a carry loan for all of Impact’s remaining development, appraisal and exploration costs on the Blocks from January 1, 2024, until the first oil date.
The carry is repayable to TotalEnergies from Impact’s after-tax cash flow and net of all joint venture costs, including capital expenditures, from production on the Blocks post the first oil date. During the repayment of the carry, Impact will pool its entitlement barrels with those of TotalEnergies for more regular off-takes and a more stable cashflow profile, and will also benefit from TotalEnergies’ marketing and sales capabilities.
Completion of the transaction will be subject to customary third-party approvals from the Namibian authorities and joint venture parties.
Siraj Ahmed, Chief Executive Officer of Impact, commented: “This is a pivotal transaction for Impact that paves the way for its transition from an exploration company to a hydrocarbon producing company, through its participation in the development of the world class Venus discovery. This transaction also enables Impact to participate in further significant exploration opportunities in the Blocks, offering the potential to significantly grow the existing discovered resource base. We are delighted to be able to continue in this exciting journey with TotalEnergies. We thank our Shareholders for their steadfast support that has enabled us to reach this position.”
For the full press release visit Impact Oil & Gas here.
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