STOCKHOLM, Sweden -- PA Resources has entered into an agreement to farm-out a 72.5% interest in the exploration license Marine XIV offshore the Republic of Congo (Brazzaville) to a group of farm-in participants.
The company will sell a 29.4% working interest in the license to SOCO Exploration and Production Congo (SOCO EPC), a 21.55% interest to a subsidiary of Lundin Petroleum, and a 21.55% interest to Raffia Oil SARL. SOCO EPC will become the operator of the block. PA Resources will retain a 12.5% interest in the license and the national oil company, Societe Nationale des Petroles du Congo, will retain its 15%.
In return, the farm-in participants will pay their respective shares of PA Resources past costs, 100% of the costs for a 3D seismic program to be acquired during the first exploration period, and 100% of the costs for the first well to be drilled on the Marine XIV.
License block Marine XIV is located in the Lower Congo basin offshore the Republic of Congo. The block comprises three discontinuous sections located in water depths ranging up to 110 m (361 ft) and covers approximately 265 sq km (102 sq mi). There has been previous exploration activity on the block resulting in some oil discoveries, the company says.
The assignment of interests is subject to approval of the appropriate regulatory authorities of the Government of the Republic of Congo (Brazzaville).