30 April 2012 – Frankfurt listed African International Energy (AIE) which has offices in London and Johannesburg and has plans to be an African independent power producer (IPP) backs commercial efforts to double existing power generation in South Africa to 80 GW by 2025.
The company announced in April 2012 that it is acquiring 100% of the total issued share capital of Forest Exploration SA and Anschutz SA in a combined transaction of R2.1 billion, and plans to become an IPP in South Africa through project development related to off-shore natural gas
The acquisition translates into 76% of the two companies’ interest in the production and exploration rights in the Ibubhesi gas field located in the Orange basin on the west coast of South Africa.
Petro SA, which holds the balance of 24%, will remain a partner with AIE in the production licence and exploration licence blocks entitled 2A and 2C respectively. Forest Oil, Anschutz and PetroSA obtained exploration rights for these blocks from the Petroleum Agency of South Africa in 1998. AIE commenced negotiations in 2010 with Forest Oil and Anschutz to acquire their interest in Block 2A and 2C and secured the final terms of agreement with Forest Oil and Anschutz by paying the R79 million as an option deposit on the 11th of April 2012.
Aldworth Mbalati, AIE CEO says, “Following the conclusion of all agreements, we are delighted to commence a process to generate clean electricity using the Ibubhesi gas field as a fuel source.”
Block 2A, the production licence, has probable (P50) reserves of 850 billion cubic feet (Bcf) of gas while Block 2C, the exploration licence, has identified a prospect which may produce up to 505 million barrels of oil once drilled.
On-site production is due to kick off in the 2nd half of 2013.