Calima Energy is the latest oil play to get on the ground in Namibia having been awarded a 5433-square kilometre exploration block in the emerging deepwater oil play of the Orange River Basin.
The ASX-listed company has been awarded a petroleum agreement – which is for an initial four-year term – for a 56% stake and operatorship of offshore Block 2813B from the Namibian government.
During the first year of the initial term, Calima will undertake an evaluation of the existing data in and around the block.
Over the four years of the initial term, Calima will acquire 2D or 3D seismic data and undertake a detailed prospectivity review.
There has been an upsurge in interest from major international oil companies in Namibia, with Exxon, Total and ONGC all acquiring interests over the last six months.
The increase in industry interest and transaction activity has been driven by the presence of multiple oil-prone source rocks encountered in recent exploration wells.
According to Calima, the acreage is believed to be underlain by these source rocks where they could be sufficiently mature to generate an oil charge.
“This investment in Namibia provides shareholders with an interest in a high-profile emerging hydrocarbon province alongside major oil companies,” Calima said.
Together with Calima’s other portfolio assets in Western Sahara and Comoros, this project has the potential to generate real shareholder value with only modest investment of capital.”
Calima’s core focus in the short term remains on the Montney Formation in British Columbia, where the Company plans to drill several wells later in the year.
Shares in Calima were trading at 5.3c at 11:40am AEST.