Continental Focus, International Reach

Tullow Adding to Namibian Acreage

Monday, July 21, 2014

Tullow Oil Corp. expanded its presence in Namibia when it farmed into Eco (Atlantic) Oil & Gas’ Block 2012A in the Walvis Basin. Tullow’s Namibian unit, Tullow Kudu Ltd., agreed to acquire up to a 40% interest in the block.

Under the deal, Eco will initially transfer a 25% working interest in the block to Tullow in return for a carry of the company’s share of costs to execute and process the seismic program, and the reimbursement of 25% of the company’s past costs in an amount to Eco Atlantic of approximately $1 million.

Following the first transfer, if Tullow elects to participate in the drilling of an exploration well on the block, the company will be transferred an additional 15% working interest, in return for a full carry of the Eco’s share of costs to drill an exploration well (capped at $53 million) and the reimbursement of an additional 15% of the past costs. Eco Atlantic will remain operator until the second transfer, at which time, Tullow will be appointed as operator of the block.

This farm-out, in conjunction with Eco Atlantic’s prior farm out to Azimuth for 20%, nets the company a 100% carry of all costs on an expanded 1,000 sq km 3D seismic survey and interpretation. The seismic program is expected to start in Q4.

 

 


« GO BACK