Australia-based Sunbird Energy has agreed a deal to raise more than AUD$25 million to help advance its Ibhubesi Gas Project offshore South Africa.
The deal involves Pan-African investment company Vandasia Investments acquiring 43.9% interest in Sunbird via a two-stage transaction involving two capital raisings and conversion of 47.75million existing $0.20 options.
Sunbird’s Chairperson, Mr Kerwin Rana, said that, “Sunbird is pleased to welcome Vandasia as a strategic partner and major new shareholder. The investment by Vandasia demonstrates the value proposition of the Ibhubesi Gas Project as South Africa’s largest undeveloped gas field and the advanced nature of our gas supply negotiations with potential customers.”
Sunbird holds a 76% interest in the Ibhubesi Gas Project (IGP), which it says is the largest undeveloped gas discovery in South Africa, at 540Bcf 2P resources.
IGP is within Production Right Block 2A, which covers 5000sq km within the Orange Basin. The block is 380km north west of Cape Town and 70km off the coast of the Northern Cape Province.
Sunbird says IGP has multiple development opportunities to supply the high value South African energy market including ongoing gas sales negotiations with Eskom for the provision of gas to the existing Ankerlig Power Station, Independent Power Producers and major industrial users.
Related OE coverage:
Sunbird final scoping for Ibhubesi gas project, 27 August 2014
Sunbird awards contract off South Africa, 13 September 2013