MX Oil Plc agreed to terms to sell its investment in the Aje Field offshore Nigeria to GEC Petroleum Development Co. Ltd. (GPDC), the company said Feb. 26.
Joe Obiago, chairman and CEO of Nigeria-based GPDC, said that the Aje Field and license OML 113 will add 10 MMboe of 2P net reserves, diversifying the company’s portfolio in the resources-rich Dahomey Basin. It will also boost the company’s work in medium- and long-term gas supply to the Lagos and West African corridor, he said.
GPDC develops oil and gas in the Niger Delta and Anambra basins, operating two offshore licenses, the OPLs 2009 and 2010; it also operates onshore licenses OPLs 907 and 917, and OML 149 in a joint venture with Eni/Nigerian AGIP and Seven Energy.
These assets have 2P reserves (net) of 16 MMboe and 2C resources (net) of 139 MMboe. GPDC’s total gas resources are estimated at 6.4 Tcf and its oil resources are estimated at about 1.3 Bbbl.
Under the agreement, GPDC can acquire MX Oil’s indirect investment in field for US$18 million. GPDC will receive US$3.5 million in three stages: the first payment of US$2 million will arrive on March 14, and will fund the remaining cash calls that will likely be required to bring the asset on production.
GPDC will likely be able to acquire MX Oil’s investment when oil production begins; after that GPDC will receive one payment of US$5.75 million and then a second payment of US$5.75 million six months later. The balance will be paid in three yearly installments, and if the price of oil passes US$45/bbl, these payments could be accelerated, MX Oil said.
GPDC is Global Energy Co. Ltd.’s wholly owned E&P subsidiary.
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