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Canadian oil and gas company Africa Oil obtains 80% operating interests in both offshore Blocks EG-18 and EG-31, while the UK-based Panoro Energy has been awarded a 56% participating interest and operatorship of Block EG-01, offshore Equatorial GuineaCanadian oil and gas company Africa Oil has signed two production-sharing contracts (PSCs) with the Republic of Equatorial Guinea for offshore Blocks EG-18 and EG-31.
Canadian oil and gas company Africa Oil obtains 80% operating interests in both offshore Blocks EG-18 and EG-31, while the UK-based Panoro Energy has been awarded a 56% participating interest and operatorship of Block EG-01, offshore Equatorial GuineaCanadian oil and gas company Africa Oil has signed two production-sharing contracts (PSCs) with the Republic of Equatorial Guinea for offshore Blocks EG-18 and EG-31.
Under the terms of the PSCs, Africa Oil will obtain an 80% operating interest in each block with the remaining stake to be held by GEPetrol, Equatorial Guinea’s national oil company. GEPetrol has the option to purchase an additional 15% participating interest in each block.
Africa Oil has identified several gas-prone prospects in Block EG-31, close to the offshore Alba gas field and the onshore Punta Europa Liquefied Natural Gas (LNG) terminal. The company also identified a large and highly prospective basin floor of Cretaceous age in Block EG-18, which is similar to those in its exploration portfolio in Namibia and South Africa. Both blocks are covered by 3D seismic data, with $7m in total minimum work commitment in the initial exploration periods, without any drilling commitment.
Africa Oil President and CEO Keith Hill said: “Block 31 offers the potential for low-risk gas prospects that are in a proven petroleum province with infrastructure and ullage for significant additional volumes of gas. In Block 18 we see a large turbidite fan that is reminiscent of some of our large discoveries in Namibia and South Africa. These blocks offer high-impact value upside for our shareholders at a relatively low cost, and we look forward to continued collaboration with the government of Equatorial Guinea to explore and develop its natural resources.
In a separate development, the government of Equatorial Guinea has awarded UK-based Panoro Energy a 56% participating interest and operatorship of Block EG-01. Other partners in the block include Kosmos Energy with 24% and GEPetrol with 20%.Block EG-01 is located in water depths between 30m and 500m, sharing its borders with both Panoro’s partly-owned Block G and Block S.
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Equatorial Guinea awarded the block for an initial period of three years, during which the partners will conduct subsurface studies based on existing seismic data. The partners can sign an agreement to extend the award by further two years, during which they will undertake to drill one exploration well.
