Continental Focus, International Reach

Sierra Leone Inks License Extensions

Wednesday, December 6, 2017

African Petroleum’s wholly owned subsidiaries European Hydrocarbon Ltd. and African Petroleum Sierra Leone Ltd. signed agreements with the Petroleum Directorate Sierra Leone to enter into the second extension periods of the SL-03 and SL-4A-10 licenses respectively, and to modify the work programs for both licenses during these periods.

The second extension periodexpires on April 23, 2019 for the SL-03 and on  September17, 2019 for the SL-4A-10 should the subsidiary companies commit, prior to November 1, 2018, to drilling one exploration well in each license area during the remaining term of the respective license.

During the next 12 months, the subsidiary companies will be utilizing state owned well and seismic data, together with existing seismic data, to further derisk the licenses prior to deciding to commit to the drilling of an exploration well on each license.

In accordance with the requirements of the petroleum license agreements, African Petroleum has relinquished 50% of the SL-03 area, reducing the license area from 1,930sqkm to 962sqkm, and 50% of the SL-4A-10 area, reducing the license area from 1,995sqkm to 995sqkm.

Simultaneously with the approval of the entry into the next periods, the Petroleum Directorate Sierra Leone agreed to modify the work programs and minimum expenditure requirements of the two licenses, and to defer the social obligations of the two licenses contingent on the drilling of an exploration well on each license.

The entry into the next license periods and the license amendments were ratified by the parliament of Sierra Leone on December 4.

The subsidiary companies have been working with ERC Equipoise to re-assess the prospective oil resources on the SL-03 and SL-4A-10 licenses through the inclusion of two new material prospects: Leo and Vega.  It is expected that the revised prospective resources for the SL-03 and SL-4A-10 will be published shortly.


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