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Tuesday, October 22, 2013
WHL Energy received initial approval from the Seychelles regulatory authority, PetroSeychelles, regarding an extension to the existing Amended and Restated Petroleum Agreement (ARPA) over its Seychelles exploration interests. The extension requires WHL Energy to secure a farm-in partner by January 31, 2014 and is consistent with the amended terms offered earlier in the year to a potential farm-in party including extending Exploration Period 2 by a period of 18 months, up to July 31, 2015. This in turn will result in a deferral on the next relinquishment from the current 17,345 sq km until the same date.
The work program for Exploration Period 2 will be formally amended replacing the outstanding 2D seismic commitment of 2,000 line km with the acquisition of a minimum of 1,000 sq km of 3D seismic. The drilling program commitment has been confirmed as a single exploration well rather than the original two-well commitment.
The previous 5% rate of royalty referred has been amended to 8%, although it is has been agreed that the rate may be reduced to the original 5% in the event of a marginal discovery. The economic impact of the marginal increase in royalty is more than offset by the adoption of the 2013 Model Petroleum Agreement terms for the Petroleum Income Tax and Petroleum Additional Profits Tax.
Managing Director David Rowbottam said: “WHL Energy is pleased with the outcome as certainty was required prior to the next phase in the farm in process. WHL Energy is in the process of finalizing the engagement of an appropriate advisor to assist with the commercial aspects of the farm out in London during early November 2013 with the objective of securing a partner within the specified period. Once again we appreciate the ongoing support of PetroSeychelles and Seychelles government and we look forward to reporting further positive developments as they progress.”
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