Ophir Energy has reduced its exposure in frontier deepwater blocks offshore West Africa’s Gabon, farming out a stake in four licences to Austria’s expansion-minded OMV.
The US independent said OMV would acquire 30% non-operated interests in the Manga and Gnondo blocks and 10% non-operated interests in the Mbeli and Ntsina blocks. On completion, Ophir’s retained stakes will be 70% operated interests in Manga and Gnondo, and 40% operated interests in Mbeli and Ntsina.
The Austrian company will pay past costs and a promoted share of: The well costs on the planned Padouck Deep, Affanga Deep and Okala wells; The cost of two additional wells; the cost of 3D seismic surveys planned across the blocks. Further conditional promotes are payable in the event of success with the Padouck Deep or Okala wells, said Ophir.
Completion of this transaction is still conditional on approval by Gabon’s government.
Nick Cooper, CEO of Ophir, said the deal “brings a well-financed, experienced and motivated partner into our blocks and is in line with our strategy of mitigating exploration risk ahead of drilling. Our retained interests expose shareholders to significant upside in the event of success, especially the pre-salt play on the Mbeli and Ntsina Blocks with the Padouck Deep well due to commence in February 2014”.
OMV, which on the other side of Africa acquired an interest in a block offshore Madagascar earlier this year, says it is “taking the next step to build an exploration business in Sub-Saharan Africa”. According to its CEO, Gerhard Roiss, “It is part of OMV’s strategy to build up new exploration business in the region of Sub-Saharan Africa. The first step has been taken with the entry into Madagascar, which is now followed by a new exploration venture in Gabon. These projects are the basis for long-term growth in the region.”
Jaap Huijskes, OMV Executive Board member responsible for E&P, added, “OMV will gain in a first step an interest in more than 12,000 sq km exploration acreage in four blocks and participate in three wells to be drilled in the course of 2014.” OMV added that the wells would target substantial exploration prospects including subsalt targets. In addition, a comprehensive 3D seismic campaign is planned.
The deal will see one well drilled in each of the Mbeli, Ntsina and Gnondo blocks, with 3D seismic also being shot over each, as well as the Manga block.
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