LONDON, UK: Cloudbreak Discovery (LSE: CDL), a leading natural resource project generator, has entered into an agreement with Ultimate Resources Canada Ltd. and Masterstroke Investments Pty Ltd. to submit a petroleum development agreement and enter final negotiations for Petroleum Exploration Licence Block 2019 in Namibia.
Cloudbreak will act as a financial partner and sit on the joint operating committee giving corporate direction and reviewing technical information. In exchange for providing a financial guarantee of USD $70,000 to the Ministry of Mines and Energy in Namibia for the first phase exploration programme proposed to be undertaken as part of the application for Block 2019, Cloudbreak will be granted a 20% interest in Prosper Africa Resources Limited (“Prosper”) which is the holding entity negotiating for Block 2019. Additionally, Cloudbreak is granted a right to participate in all future equity offerings in Prosper for up to 10% of the offering.
Kyler Hardy, President and CEO of Cloudbreak, commented, “This agreement provides another exciting opportunity in Cloudbreak’s diversification strategy into the energy sector. The technical and management team we have partnered with has decades of experience in the international energy sector and specifically in the development of early-stage energy opportunities. We believe there could be significant opportunity across the energy sector for Cloudbreak through the deployment of our project generator model. I look forward to working closely with the team on the ground as we begin to realise the potential.”
About Block 2019
Namibian exploration for oil and gas is still early stage with several Karoo Basins across the Southern Trans-African Rift and Shear System largely untested. These basins are highly prospective hosts for oil and gas. Initial exploration has yielded positive indications of the mineral potential. These basins are comprised of thick sequences of sedimentary materials ranging in composition from conglomerates to mudstones with observed carbonaceous content, specifically several coal deposits and seams.
The interactions of the Southern Trans-African Rift system have played a key role in basin development as intra-basin transfer faults. The same tectonic processes provided the drivers for hydrocarbon development in the region. Block 2019 is a conceptual early-stage regional exploration target with a solid geologic thesis, as such additional data collection and compilation will be required to further refine the target area.
Petroleum Exploration License Block 2019 is targeting the Waterberg basin and is located in central northeast Namibia. The Tevrede Formation has seen greater research focus to the west than the Block 2019 area and provides a proxy of the basin development with both sound exposure of the stratigraphy and well mapped structural conditions.
The stratigraphy in this part of the basin has been mapped as basal muddy sandstones, with rounded polymictic metamorphic pebbles, these reworked Dywka glacial deposits are overlain by carbonaceous mudstones, which have been observed to be interfingered with coal seams and are sub-divided by fluvial sandstones. Next steps on the project will be to continue to gather geophysical data and further delineate the basin, refining targeting of the favorable stratigraphy on the exploration license.
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