Petroleum Africa
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Thursday, June 8, 2017
Clontarf Energy was awarded acreage in Equatorial Guinea’s 2017 Bid Round. The company gained access to Block EG 18, which covers approximately 5,062 sq km of undrilled deepwater acreage.
According to Clontarf, the block contains several play types and it will focus on working on large structural and/or stratigraphic trap targets.
The bid terms include Clontarf Energy with 70% of production interest, 65% oil cost recovery, a $150,000 signature bonus, standard commerciality and production bonuses, normal land taxes.
The production royalty is a standard 13%, rising to 16% on production over 100,000 bpd. The contractor interest starts at 80% through the first 40 million barrels of oil production, and falls according to a standard formula until output reaches 200 million barrels. Profits tax is 35%.
The initial work program is for three years (extendible) to include seismic acquisition plus one well if drillable targets are identified. The second sub-period is two years, with two allowable extensions of one year each accompanied by a work program.
Director David Horgan commented, “Clontarf has long been interested in Equatorial Guinea’s deep-water potential, which is among some of the most prospective in West Africa. EG-18 is part of the Northern Rio Muni Basin, which Clontarf has analyzed. Our initial interest is in diverse Cretaceous sands plays, particularly a distal fan and turbidite channels visible on historic seismic.
“Until the 2017 Bid Round, Equatorial Guinea was largely perceived as the bailiwick of US majors and Chinese National Oil Corporations. For the first time, the 2017 Bid Round sought new ideas and fresh approaches from the diverse community of oil independents, who have delivered so much elsewhere in West Africa.
“The fine detail is expected to be finalized in early meetings scheduled with the Equatorial Guinea authorities.”
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