The Angolan National Agency for Oil, Gas and Biofuels (ANPG) signed a risk service contract (RSC) on December 31 for offshore Block 6/24 with Red Sky Energy, ACREP Exploração Petrolífera (ACREP) and Sonangol Exploracao e Produção following negotiations undertaken by Red Sky with ANPG.
“Over the past few years, Red Sky has been evaluating opportunities to acquire producing or near production assets,” commented Red Sky Managing Director, Andrew Knox. “The company is actively pursuing prospects created by major energy companies’ global shift away from fossil fuels.”
Red Sky said Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation.
The block also reportedly has substantial resource potential based on the existing 2D and 3D seismic data. The JV partners plan to prove up these resources, further improving the economics of the block.
“Several parties have expressed interest in providing 100 per centr project finance for the development,” added Knox.
“This transaction enhances our asset base with a high prospectivity offshore block and provides substantial diversification benefits, complementing our Innamincka gas and Killanoola oil projects in South Australia.”
Sonangol E&P is the operator of the block with a 50 per cent participating interest. Red Sky Energy will hold a 35 per cent participating interest, and ACREP will hold the remaining 15 per cent participating interest.
Block 6/24 is located 12 kilometres offshore Angola in the Kwanza Basin, in water depths ranging from 70 to 80 metres. The block is covered by 1,531km2 of 2D seismic and 1,465 km2 of 3D seismic.
