https://www.engineeringnews.co.za

Seychelles govt approves WHL farm-out

Seychelles govt approves WHL farm-out

Photo by Bloomberg

4th April 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – ASX-listed oil and gas developer WHL Energy has received regulatory approval for a multimillion-dollar farm-out agreement with Ophir Energy over its Seychells petroleum project area.

Under the terms of the agreement, Ophir could earn a 75% interest in WHL Energy’s offshore exploration assets.

Ophir would fully fund the acquisition of 1 500 km2 of three dimentional (3D) seismic, up to a total amount of $17-million. On meeting the conditions of the farm-out agreement, which included formal regulatory approval by the government of the Seychelles, Ophir would pay WHL Energy $4-million in cash for partial recovery of back costs. 


Following the acquisition and evaluation of the initial seismic, and before the end of July 2015, Ophir could either withdraw from the farm-out or exercise the option to both fully fund the acquisition of a further 1 000 km2 of 3D seismic, up to $12-million, and to fund 90% of the costs of the first exploration well, up to a total amount of $30-million.

WHL Energy MD David Rowbottam said on Friday that the transaction with Ophir was not only an opportunity for WHL Energy and its shareholders, but also for the people of the Seychelles, with Ophir Energy able to bring its technical expertise, experience and a strong cash balance to support exploration of the Seychelles’ petroleum prospectivity to unlock the high value potential contained within this large and vastly underexplored exploration area.

“We look forward to executing the final documentation for the farm-out to become unconditional before the end of this month, heralding the official start-up of our JV [joint venture] with Ophir Energy,” Rowbottam said.

Edited by Creamer Media Reporter

Comments

Showroom

Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.228 0.285s - 156pq - 2rq
Subscribe Now