Rent Seeking New Age Hopes for a Well Heeled Partner in South Africa

New Age Energy (New Age), is hoping that the successful results of TOTAL’s South African drilling will lure  E&P companies to farm in into its Algoa-Gamtoos Licence.

The company is embarking on the second exploration phase of the licence, which will run for two years from 17 November 2020.

The work programme during this period will include a further 300 km2 of 3D seismic data acquisition in the licence area.  

But New Age is unlikely to invest in 3D seismic data acquisition, let alone drill a well on the licence. It’s not about having access to funds and resources. New Age Ltd is not wired to invest heavily in exploration technology. It focuses on looking for the assets and the farmos.

TOTAL operated Block 11B/12B,“ is located adjacent to the Algoa-Gamtoos license”, says Tower Resources, a minority partner to New Age Ltd on the acreage. “The Algoa-Gamtoos license also contains the southern deep-water basin margin of the Outeniqua Basin that was targeted by TOTAL’s Brulpadda and Luiperd-1X wells and is approximately 150 kms along strike to the East”.

The Luiperd-1X well encountered 73 metres of good quality net pay in 85 meters of gross sands in the main target interval andthe well reached a maximum constrained flow-rate through a 58/64″ choke of 33 million cubic feet per day of natural gas (‘MMcfpd’) and 4,320 barrels of condensate per day (‘bcpd’), an aggregate of approximately 9,820 barrels of oil equivalent per day (‘boepd’), according to reports. The choke configuration could not be increased due to surface equipment limitations.

New Age has reprocessed the existing 2D seismic data over the license during 2020. But that is all it would do. The company says that the effort has yielded a considerable improvement in resolution, and expects to have updated analysis and volumetrics available in January 2021, which will also be made available to potential farm-in partners.

 


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