Africa Energy Corp. announced that the Gazania-1 exploration well on Block 2B offshore South Africa did not encounter commercial hydrocarbons. The well is being logged and will then be plugged and abandoned.

Block 2B is located offshore South Africa in the Orange Basin. The block covers 3,062 square kilometers approximately 25 kilometers off the west coast of South Africa near the border with Namibia in water depths ranging from 50 to 200 meters. Soekor discovered and tested oil on Block 2B in 1988 with the A-J1 borehole, which intersected thick reservoir sandstones between 2,985 meters and 3,350 meters.

The well flowed 191 barrels of oil per day of 36-degree API oil from a 10-meter sandstone interval at approximately 3,250 meters. Significant prospectivity was identified over the A-J graben area using 686 square kilometers of 3D seismic data acquired in 2013. The Gazania-1 exploration well was drilled to a total depth of approximately 2,330 meters subsea.

Gases normally associated with light oil were encountered throughout the well, confirming that the active hydrocarbon system proven by the A-J1 discovery extends up-dip to the Gazania-1 well location. Weather conditions and service logistics resulted in drilling delays. However, the well was drilled safely, and there were no environmental challenges.

The Block 2B joint venture submitted a Production Right application to the Petroleum Agency of South Africa on November 15, 2022. The Gazania-1 well is currently being logged, and the joint venture partners will undertake a detailed analysis of the results. Further analysis and integration of the well data will allow the joint venture to determine next steps on the block.

The Company expects its net cost exposure on the well to be approximately USD 5 million.