Offshore staff
LONDON – Hague and London Oil subsidiary Maghreb Exploration has acquired Premier Oil (SADR)’s interests in five exploration license areas in the Sahrawi Arab Democratic Republic (SADR, or Western Sahara) offshore northwest Africa.
Premier SADR has 50% stakes in the Daora, Haouza, Mahbes, and Mijek concessions and 100% of the Laguera area.
Maghreb holds HALO’s existing three licenses in SADR which will be transferred to Vermeer Exploration BV, a wholly owned subsidiary of HALO focused on higher- risk assets.
The transaction involved a nominal consideration of $1 toPremier Oil and a gross royalty of 5% over future production revenue from interests in the blocks held by Maghreb and 5% of the proceeds of any eventual sale of these interests, subject to a cap.
HALO is currently pursuing the sale of 51% of its interest in Vermeer.
Although there is political uncertainty over the region, with overlapping license claims between the SADR andMorocco, the promising geology in the Atlantic Margin is the main attraction, due in part to the recent deepwater oil and gas finds to the south off Mauritania and Senegal.
Andrew Cochran, HALO’s chairman and interim CEO, said: “Should the political uncertainties be resolved, this acquisition will add to HALO's exposure to a high-potential basin.”
The transaction remains subject to government, partner, and regulatory approvals.
06/24/2016
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