Australian oil and gas company Red Sky Energy has signed a risk service contract with the Angolan National Agency for Oil, Gas and Biofuels (ANPG), acquiring 35% interest in Sonangol-operated Block 6/24 in the Kwanza Basin, offshore Angola.
Sonangol E&P is the operator of the Block with a 50% participating interest. Red Sky Energy will hold a 35% participating interest, and ACREP will hold the remaining 15% participating interest.
Block 6/24 is located 12 kilometres offshore Angola in the Kwanza Basin, in water depths ranging from 70 to 80 metres.
The block is covered by 1,531km2 of 2D seismic and 1,465 km2 of 3D seismic.
Red Sky was granted access to a data room by the Angolan National Agency for Oil, Gas and Biofuels (ANPG) during the direct negotiation process.
As a result of its review of the materials in that data room, the company estimates that there is significant potential for oil to be found in Block 6/24.
In addition, the block contains the Cegonha oil discovery, and further studies are to be undertaken to determine the commerciality of that discovery.
"Over the past few years, Red Sky has been evaluating opportunities to acquire producing or near production assets. The company is actively pursuing prospects created by major energy companies' global shift away from fossil fuels.
“The signing of the RSC Block 6/24 marks our first entry into Angola and is a transformational milestone for Red Sky. Block 6/24 contains a potential commercial oil discovery that the JV partners plan to evaluate for early production and cash flow generation.
“The Block also has substantial resource potential based on the existing 2D and 3D seismic data. The JV partners plan to prove up these resources, further improving the economics of the Block. Several parties have expressed interest in providing 100% project finance for the development.
“This transaction enhances our asset base with a high prospectivity offshore block and provides substantial diversification benefits, complementing our Innamincka gas and Killanoola oil projects in South Australia,” said Andrew Knox, Red Sky’s Managing Director.
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