Australia's Sunbird Energy Completes Ibhubesi Gas Project Acquisition Offshore South Africa

Australia listed, Southern Africa focused oil and explorer Sunbird Energy announced last week that all required South African government approvals have now been received and that it has consequently finalised its acquisition of the Ibhubesi Gas Project (IGP) from Forest Oil Corporation.

The approvals conclude the acquisition by Sunbird of a 76% interest in Production Right Block 2A, which covers a 5,000km2 area within the Orange Basin and contains the IGP, South Africa’s largest undeveloped gas discovery with 2P reserves of 540 Bcf.

“Completing the Forest Oil transaction delivers to Sunbird a highly valuable asset, with South Africa’s largest proven gas field, at a time when emergency load shedding is again in the headlines in South Africa. The South African energy market is both highly constrained and high value, creating a unique opportunity for Sunbird as the most advanced project for the supply of energy for the domestic market. We look forward to progressing our gas sales negotiations with Eskom for the supply of gas to the existing Ankerlig Power station that is currently run on expensive diesel, and further exploring Block 2A’s upside potential.” said Sunbird Managing Director Will Barker.

Joint Venture partner PetroSA, South Africa’s national oil company, holds the remaining 24%. 

Over $125m has been invested in the exploration and appraisal of Block 2A since 2000, with 7 of the 11 wells drilled to date discovering commercial volumes of gas, Sunbird said in a statement.

Beyond the existing discoveries, an independent assessment determined that the block contains a Best Estimate prospective gas resources of 7.8 Tcf, the company added.