Sunbird Energy Ltd. has executed an agreement to acquire a 76 percent interest in the 870 Bcf (2C) Ibhubesi Gas Project offshore west coast South Africa for an initial purchase price of $1.5 million.

The acquisition, when completed, will provide Sunbird with a 76 percent interest in Production Right Block 2A, which covers a 1,931-square mile (5,000-square kilometer) area within the Orange Basin and contains the Ibhubesi gas discovery. The block is located 236 miles (380 kilometers) north west of Cape Town and 65 miles (105 kilometers) off the coast of the Northern Cape Province.

Sunbird Managing Director Will Barker said: "Following the recent launch of PetroSA's Ikhwezi Project, the Ibhubesi Gas Field is now the largest undeveloped gas discovery in South Africa. Through this acquisition and the subsequent development of the project, we are able to transform Sunbird from a gas explorer to one of the leading gas developers and producers in southern Africa."

Tags: Sunbird Energy Ltd.