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Johannesburg- and New York-listed Camac Energy has been given the go-ahead to evaluate, over the next nine months, the economic feasibility of developing three discovered oil and gas fields, 15 km to 35 km offshore Ghana.
The Africa-focused independent oil and gas exploration and production company this week inked a petroleum agreement with the government of Ghana to pursue the “various development scenarios” for the Expanded Shallow Water Tano (ESWT) block within the Tano basin, off the coast of the West African country.
Camac would partner with Ghana National Petroleum Corporation (GNPC) and Base Energy Ghana to examine options for the economical development of the discovered fields on a “fast-track basis”, Camac chairperson and CEO Kase Lawal said in a statement.
This followed approval by Ghana’s Parliament in March of the agreement between the government of Ghana, Camac Energy Ghana, GNPC, Base Energy Ghana, and GNPC Exploration & Production Company for the exploration of oil in the 1 508 km2, 55-m- to 116-m-deep ESWT block, which comprised “significant” quantities of “producible” oil and gas reservoirs in the Tano North, Tano West and Tano South fields.
The ratification of the petroleum agreement followed its approval by Ghana’s Cabinet and a review by the Parliamentary Select Committee on Mines, Energy and Petroleum.
"The Tano basin offers the kind of high-reward oil prospects that we believe will enable us to build near-term value for our shareholders through the drillbit,” Lawal commented.
GNPC Exploration & Production Company holds a 25% participatory stake in the project, while Base holds 15% and operator, Camac Energy Ghana, 60%.
The interest held by Camac Energy Ghana would be 50% owned by Camac Energy and 50% by Camac International.
GNPC would initially have a 10% carried interest and have the right to acquire an additional paying interest of up to 10% following a declaration of commerciality.