Petroleum Africa
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Wednesday, November 30, 2016
Africa Energy Corp. entered into a farm-out agreement with a subsidiary of Pancontinental Oil & Gas which will give it a 10% stake in Namibia’s PEL 37. Under the terms of the agreement, and similar to the terms of Pancontinental’s participating interest, the company’s participating interest share of all JV costs, including the drilling of the first exploration well, will be fully carried through the current exploration period by a JV partner.
Africa Energy has agreed to pay Pancontinental $1.7 million at the close of the farm-out agreement and an additional $4.8 million upon spud of the first exploration well. Completion of the agreement is subject to receipt of all requisite government approvals, other regulatory approvals, third party consents, partner approvals, and finalization of due diligence procedures.
James Phillips, President and CEO for Africa Energy commented, “I’m very pleased to announce our acquisition of a 10% fully carried interest in PEL 37, offshore Namibia. The block contains a series of extensive base of slope fan prospects with significant combined resource potential. The fans directly overlie a mature oil-prone source rock of Aptian age, which was recently proven by the 2013 Murombe-1 and Wingat-1 wells in which the latter well recovered light oil. Africa Energy’s technical team has experience in these West African Cretaceous fan plays and we look forward to the drilling of a well in this play.”
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