Impact to raise N$1 billion for Venus

The company, Impact Oil and Gas, said this further appraisal would have the partner companies drilling more to determine the size of the oil or gas field and how to develop it most efficiently.

Impact said it is offering its existing shareholders new ordinary shares in the company, and they have until early August to submit their interest.

“The capital raised shall be used towards funding Impact”;s participating share (held through its wholly owned subsidiary, Impact Oil and Gas Namibia (Pty) Ltd) of the Venus appraisal programme, in Block 2913B, offshore Namibia,” said the company.

Major shareholders, representing 93,62% of the voting rights in the company, have reportedly committed to take up the entire offer.

According to the company, the proceeds of up to US$60 million from the open offer, together with unmentioned existing cash reserves will be advanced towards funding other exploration activities, into early 2023.

The Venus discovery is a world-class light oil and associated gas field, sitting approximately 290 kilometres off the Namibian coast.

The Venus-1X discovery well was drilled by TotalEnergies on behalf of the joint venture group comprising TotalEnergies (40%), QatarEnergy (30%), Impact (20%) and state-owned National Petroleum Corporation of Namibia (Namcor) (10%).

Namcor spokesperson Paulo Coelho said the state will not raise any capital for further work post the discovery.

“Namcor is not a listed company to raise capital for exploration costs. We remain carried in the licence. Impact, as per the notice, is doing it to seek funding as part of their share of the costs in the licence,” he said.

It is also not clear whether the other partners in the discovery have launched similar initiatives to raise cash or will use their reserves.

Impact said an appraisal well and re-entry into Venus-1X is planned, with spud expected in the third quarter of 2022.

“The operator plans to conduct flow tests on both wells. The joint venture will also continue to progress its exploration activities on Blocks 2913B and neighbouring Block 2912, including the acquisition of a 3D seismic survey,” said the company.

Impact Oil and Gas chief executive Siraj Ahmed said he was upbeat 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.

“This is remarkable progress reflecting 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,” he said.

The company said it expects the offer to raise maximum cash.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.