Australian oil and gas explorer, Grand Gulf Energy, has taken a strategic step into Namibia’s offshore energy space by signing a deal to control a block in the Walvis Basin, a region gaining global attention following recent oil discoveries.
The company stated that it has entered a binding option agreement to acquire 100% of Wrangel Pty Ltd, which has applied for a 70% working interest in Block 2312 an exploration permit in the Walvis Basin.
This move places Grand Gulf among global players such as Shell, Chevron, and TotalEnergies, which are already active in Namibia’s oil rich offshore territory.
In a statement seen on Monday, Grand Gulf said the application for Block 2312 is being made in partnership with Namibia’s TSE Oil and Gas (20%) and the National Petroleum Corporation of Namibia (NAMCOR), which holds a 10% interest.
“Namibia has become one of the most exciting new oil frontiers, and Block 2312 offers significant untapped potential. We’re confident that our entry will add value to the ongoing exploration efforts in the region,” a spokesperson for Grand Gulf noted.
Seismic data and block details
Block 2312 is located south of Chevron’s PEL 82 and spans about 16,800 square kilometres in water depths ranging from 1,400 metres to 2,000 metres.
The area was previously operated by AIM listed company Chariot, which conducted several seismic studies to evaluate the site’s geological potential.
In 2015, Chariot acquired around 1,700 km of 2D seismic data and followed up with a 3D seismic survey of about 2,600 sq km in 2016.
This new data was later combined with 3,500 sq km of legacy 3D seismic data, bringing the total mapped area to 6,100 sq km. Using this information, Chariot identified multiple dip closed structural prospects believed to hold hydrocarbon potential.
According to earlier assessments from Chariot, the basin is known to contain two source rocks rich in organic carbon and within the oil generating window.
These formations were observed during the Wingat-1 drilling in 2013, which also encountered thin bedded sandy reservoirs that were saturated with oil. At the time, the company estimated a mean prospective resource of 1.1 billion barrels of oil.
To support its activities in Namibia, Grand Gulf has successfully raised $700,000 from professional and sophisticated investors. The company said the funds will be used to further evaluate Block 2312 and advance exploration work in the region.
“We are eager to build on the momentum in Namibia and bring our technical and financial resources to bear in exploring one of the most exciting frontier basins globally,” Grand Gulf added.
With this entry, Grand Gulf joins a growing list of independents and majors aiming to carve a stake in Namibia’s offshore future.
