Overview of PEL 79

Namibia's state oil company, Namcor, operates Petroleum Exploration Licence (PEL) 79 in partnership with Giraffe Energy. The licence covers blocks 2815 and 2915 in very shallow waters of the Orange basin, located east of the dormant Kudu gas condensate discovery. The partners are currently in a one-year extension period of the licence's second renewal phase and are seeking a new investor to explore the asset's potential.

Prospectivity and Key Targets

While most seismic data in PEL 79 is 2D, studies of 3D data acquired in the west have mapped numerous leads and prospects. Prospectivity has been identified in both Lower Cretaceous and Upper Cretaceous formations. The two main prospects are Meerkat and Sitatunga, which together could hold total prospective resources of approximately 4.5 billion barrels of oil. Notably, these prospects can be targeted by a single exploration well, allowing both to be tested simultaneously.

Detailed Prospect Characteristics

Both prospects are stratigraphic traps. The Albian-age Meerkat is the larger of the two, potentially containing 2.4 billion barrels of oil, while the Turonian-age Sitatunga may hold 2.1 billion barrels. Each prospect is composed of five stacked reservoirs, with Meerkat interpreted to hold up to 600 metres of gross reservoir and Sitatunga 400 metres. The stacked nature of the reservoirs is a key feature of the block, with additional leads also interpreted to contain stacked zones of interest. Source rocks for both prospects are marine Aptian and lacustrine syn-rift.

Geological Context and Past Drilling

The licence is believed to sit on the same syn-rift trend identified in South African waters by the legacy AJ-1 probe, which found non-commercial oil volumes. More recently, Eco Atlantic's Gazania-1 probe in South Africa (2022) targeting this play was also unsuccessful. Despite these outcomes, Namcor maintains confidence in the syn-rift prospectivity within the block. Only one exploration well, 2815-1, has been drilled on the acreage, which showed evidence of hydrocarbons.

Stakeholder Interests and Block Specifications

Namcor holds approximately a 67% stake in the 13,829-square kilometre licence, with Giraffe Energy holding about 33%. Sintana Energy has an indirect interest of 16.17% through a prior deal linked to Giraffe. Water depths in the block range up to 210 metres.