Impact Oil & Gas has set out an open offer to raise up to $60 million in order to finance its participation in Namibia’s Venus discovery.
Existing shareholders will be able to acquire four shares for every 33 existing ordinary share they hold. The offer closes on August 4. Shareholders with 93.62% of Impact’s equity have committed to take up their shares.
The cash will go to financing Impact’s share of spending at Block 2913B, offshore Namibia.
TotalEnergies is planning an appraisal well and a re-entry of the Venus-1 find. It will flow test both wells. It expects to begin drilling in the third quarter of this year.
In addition to drilling, the operator will also acquire a 3D seismic survey on Block 2913B and neighbouring Block 2912. The seismic is intended to focus on the western extension of the Venus find.
“We are excited to be preparing for the appraisal of the world class light oil and associated gas discovery in Venus-1X, expected to commence only seven months after the initial discovery was announced,” said Impact CEO Siraj Ahmed.
“This is remarkable progress that reflects the commitment of the joint venture to accelerate the de-risking and commercialisation of the Venus discovery. We are grateful to our shareholders, who have steadfastly supported Impact through a difficult period in the industry, and are grateful for their continued support in this capital raise.”
The cash from the offering should fund Impact through to early 2023, it said. The cash should be enough for the “majority” of the appraisal programme, it said.
Total has a 40% stake in Venus, while QatarEnergy (QE) has 30%, Impact 20% and Namcor 10%.
Impact noted that the operator had drilled the well to a depth of 6,296 metres with the Maersk Voyager drillship. It found a high quality, light oil-bearing sandstone reservoir of Lower Cretaceous age, with 84 metres of net oil pay.
Should the appraisal work be successful, Impact said the plan could move ahead with an early development programme.