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The government of Cameroon has awarded Dana Petroleum a production sharing contract (PSC) for the Bakassi West block in Cameroon, Africa. In a deal which extends Dana’s existing position in Africa, the company will be the operator, with 55% working interest; Madison Cameroon Oil and Gas Ltd., 35%; and SoftRock Oil and Gas Ltd., 10%.
The PSC gives Dana access to prospective, shallow water exploration acreage in a new country in West Africa. Bakassi West is situated in the Rio Del Rey Basin in southwest Cameroon, adjoining the border of Nigeria on the southern margin of the Niger Delta and covering an area of almost 390 sq km.
The initial exploration work program, with an estimated investment of $31 million, will last four years with the acquisition, processing and interpretation of 250 km of 2D seismic data, and the drilling of two exploration wells.
Depending on the results obtained during the first period, this program could be extended to two further periods of two years each. These supplementary periods would include the acquisition and processing of 100 km of 2D seismic data and the drilling of at least one exploration well per period. The total minimum investment for all three periods of eight years' duration is $71 million.
John Downey, Dana's director of international exploration and new ventures, said, “Our work program will begin almost immediately with data gathering and geological studies. We will conduct a seismic acquisition programme in 2013 and 2014, and expect to drill our first well by 2015.”
“Across Dana we'll invest more than $5.0 billion over the next five years to more than double the size of the company. At the same time we're focused on creating exploration opportunities by gaining access to new countries and provinces, and using our technical expertise to identify reserves for the future. Our entry into Cameroon is an important step on this journey,” Downey concluded.