The concession encompasses 5,056 sq km (1,952 sq mi) of undrilled deepwater acreage with various play types. Clontarf plans to focus on working on large structural and/or stratigraphic trap targets.
Bid terms include the assignment to Clontarf of a 70% of production interest, 65% oil cost recovery, and a $150,000 signature bonus, with a production royalty of 13%, rising to 16% if oil production exceeds 100,000 b/d.
The contractor interest starts at 80% through the first 40 MMbbl of production, falling progressively until output reaches 200 MMbbl.
Initial commitments over the next three years include seismic acquisition plus one well if drillable targets emerge. The second sub-period is two years, with two allowable extensions of one year each accompanied by a work program.
Clontarf Director David Horgan said: “Clontarf has long been interested in Equatorial Guinea’s deepwater potential, which is among some of the most prospective in West Africa.
“EG-18 is part of the Northern Rio Muni basin, which Clontarf has analyzed. Our initial interest is in diverse Cretaceous sands plays, particularly a distal fan and turbidite channels visible on historic seismic.
“Until the 2017 Bid Round,Equatorial Guinea was largely perceived as the bailiwick of US majors and Chinese national oil corporations. For the first time, the 2017 Bid Round sought new ideas and fresh approaches from the diverse community of oil independents, who have delivered so much elsewhere in West Africa.”
Horgan said: “The Tano 2A saga has been ongoing for nine years. There are numerous legacy issues which are being addressed. Progress is being made. The newly elected government is pro-development and committed to improved standards.
“We are committed to helping find and develop Ghana’s natural resources. With continued good-will and common sense we hope that any outstanding issues will be satisfactorily and promptly resolved.”
The company also has a 3% revenue royalty on block 183 offshore Peru. Here operator Union Oil is working through environmental permits and other issues that need to be resolved prior to a drilling decision.
There have been discoveries in the area and local cities need extra energy supply sources, Clontarf adds.