African Petroleum in talks on offshore northwest Africa farm-ins
African Petroleum has signed non-binding heads of terms and a binding exclusivity agreement with an unnamed oil and gas company experienced in deepwater drilling.
LONDON – African Petroleum (AP) has signed non-binding heads of terms and a binding exclusivity agreement with an unnamed oil and gas company experienced in deepwater drilling.
Under the initial eight-week period of the exclusivity agreement, both parties will finalize negotiations with the respective governments in order to amend the work commitment off Senegal and to enter the next phase of the licenses in The Gambia.
The incoming party is currently looking to fund 100% of at least twodeepwater exploration wells at a cost of up to $35 million each; a 3D seismic acquisition program; pre-stack depth migration processing/reprocessing; and potentially 100% and 85% of two further wells at a cost of up to $35 million per well.
AP CEO Jens Pace said: “Whilst final farm-in agreements are subject to completion and the successful outcome of negotiations with the governments in Senegal and The Gambia, we are confident that the proposed partner’s reputation, strong balance sheet and appetite to explore the potential of these exciting licenses with the drill bit, will greatly increase our ability to conclude the discussions with an outcome that benefits all parties.”