On 3 July 2019, Africa Oil Corp announced that its wholly owned subsidiary Africa Oil SA Corp (Africa Oil Corp) entered into a definitive farmout agreement with Azinam Limited to acquire a 20% operator interest in the Exploration Right for the Orange Sub-basin Block 3B/4B. At completion of the deal Africa Oil Corp will operate the licence with a 20% interest, Azinam will retain a 20% participating interest and Ricocure (Pty) Ltd retains a 60% participating interest.  The block is located within the Orange Sub-basin, it covers an area of 17,581 square kilometres in water depths ranging between 300 m and 2,500 m. Block 3B/4B is on trend with a potential mid-Cretaceous oil play (both Total and Shell plan to test the play in late 2019 and 2020 respectively). To date one well K-H 1 has been drilled within the area that currently makes up Block 3B/4B. It was drilled by SOEKOR in 1989 and P&A as dry. The closest discovery to the block is the Ibhubesi gas discovery located within Block 2A (discovered by SOEKAR in 1987). Ibhubesi is an Albian stratigraphic-structural play which corresponds to the age of the play currently being targeted by several players operating in the Orange Sub-basin. Â   According to Africa Oil Corp the licence partners have identified an inventory of leads and prospects from an existing 10,020 sq km of 3D data that covers most of the block (the data was acquired by BHP between end 2012 and mid-2013). During the Initial three-year period Africa Oil cop and partners will carry out a regional subsurface review of existing seismic, geological and engineering data, and may also include some select reprocessing of the existing 3D data, leading to identification of exploration prospects and recommendations for subsequent renewal periods.  Background information   On 29 May 2019, Azinam Limited (Azinam) announced that it had received government approval and completed the previously announced transaction for a 40% operator interest in 17,500 sq km Block 3B/4B. On 11 September 2018, Azinam announced that it had acquired a 40% interest in the Orange Sub-basin Block 3B/4B subject to government approval.
Africa Oil has agreed to acquire a 20% stake + operatorship in block 3B/4B (17581kmÂ²), in the in WD 300-2,500m from Azinam (-> 20%, Ricocure 60%). The deal does not comprise the smaller block 3B/4B (nearshore) of ab. 900kmÂ².