Petroleum Africa
Find us on: 
Monday, April 7, 2014
WHL Energy and Ophir Energy received regulatory approval for the farm-in agreement between the two for a stake in a Seychelles’ asset. Under the farm-in agreement, Ophir will earn a 75% interest in WHL’s offshore Seychelles petroleum exploration project area. Under the terms of the deal, final approval was required from the government and its state-run firm PetroSeychelles for the farm-out and an amended and restated Petroleum Agreement (PA).
WHL reported that the government also agreed to an extension of the current PA until April 30 to allow for all necessary documentation to be executed and completed allowing the new PA to be formalized.
The amended and restated PA includes variations to the minimum work commitments, extending the term of the current exploration period to July 31, 2016, a reduction in the size of the Seychelles permitted area controlled by the JV, and the transfer of operatorship over the project areas to Ophir. The receipt of this notice following the earlier farm-out agreement will permit the execution of the PA later this month. This step will meet the final condition required for Ophir and WHL Energy to complete and execute the joint operating agreement (JOA).
WHL Energy Managing Director, David Rowbottam, said: “We have made significant progress in moving forward with this quite complex, international agreement. I would like to personally thank the Seychelles Government and PetroSeychelles for their diligence, hard work and support in recommending the all-important regulatory approval to allow our agreement with Ophir to continue to move forward.”
“This is not only a tremendous opportunity for WHL Energy and its shareholders, but for the people of the Seychelles, with Ophir Energy able to bring its technical expertise, experience and a strong cash balance to support exploration of the Seychelles’ petroleum prospectivity to unlock the high value potential contained within this large and vastly underexplored exploration area. We look forward to executing the final documentation for the farm-out to become unconditional before the end of this month, heralding the official start-up of our JV with Ophir Energy,” Rowbottam said.
Ophir will pay WHL $4 million in cash for partial recovery of past costs. Ophir will also fully fund the acquisition of approximately 1,500 sq km of 3D seismic, up to a total amount of $17 million. WHL Energy recently closed an invitation to tender period for the acquisition of the initial 3D seismic program and has received a number of quality applications. Recommendations on the most suitable contractors will be made in the near future to Ophir as the incoming operator.
As part of the terms of the new PA, WHL Energy and Ophir Energy have agreed to relinquish portions of the Seychelles licenses, reducing the permitted area from 17,345 sq km to 12,856 sq km.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
