I’ve got one of those at home
I’m sure, you have. But this is a different Orange Basin (note the proper nouns).
So, what is this Orange Basin?
It’s a potentially oil-rich area off the coast west coast of South Africa and Namibia so far untapped by the majors. Well, until to a consortium led by Total got stuck in.
Okay, so what did the French find?
In February, the Venus 1-X well discovered a ‘net’ 84 metres of good quality oil on the Namibian side of the sea border.
Is that a lot?
It’s enough to excite quite a bit of interest. Shell quickly got in on the act with its Graff-1 well targeting a potential 400mln barrels of crude.
What’s the latest?
Canadian and UK small-cap Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) has outlined plans to move further south but in the same geological basin as Venus and Graff. It will spud the Gazania-1 well later this year targeting 350mln barrels of oil equivalent.
Aren’t offshore wells expensive?
They are. Gazania’s costs are put at US$55mln.
Wow, that is a lot?
Don’t worry Eco Atlantic won’t stump up the full amount. It is the senior partner in a consortium that will share the costs. Eco has raised US$25.5mln to hold up its end of the investment.