Ophir Plc has entered into a farm-out agreement with Kosmos Energy (NYSE: KOS) covering the EG-24 exploration license in Equatorial Guinea, the company said on May 14.
Under the terms of the agreement, Kosmos will acquire a 40% non-operated interest in Block EG-24. In consideration Kosmos will fully carry Ophir for the cost of a block-wide 3-D seismic survey, during the first exploration period of the license. Furthermore, Kosmos will partially carry Ophir for the cost of a well if the partners subsequently elect to drill a well in the second period of the license. Kosmos will also pay its pro-rata share of past costs.
Commencement of the seismic operations conducted by Shearwater is scheduled to begin May 14 using the Polar Marquis vessel. Completion of this transaction is conditional on approval by the government of Equatorial Guinea. GEPetrol has a 20% carried interest in the EG-24 license.