· Ophir to fully fund initial 3D seismic acquisition (covering 1,500 sq km) for $17 million
· Following regulatory approval, Ophir to pay $2 million in back costs
· Following take-up of drilling option on or after 31-Jul-2015, Ophir to fund 100% costs of further 3D acquisition for $12 million and 90% of costs of first exploration well for up to $30 million; further back costs of $2 million also to be paid
· Covers 17,345 sq km in the southern and eastern flank of the Seychelles platform
· Acquired by WHL in 2010
· Estimated to hold more than 3 BBOE in P50 prospective resources
· Oil-prone, particularly in the newly-identified Correira Basin
· Several leads identified in the Beau Vallon and Junon areas
Nick Cooper, Ophir CEO, commented: "Ophir's preferred exploration model is to secure large operated positions, with significant running room, in frontier basins where the fundamental elements of a hydrocarbon system are in evidence. We are therefore pleased to have executed this material new basin entry into the offshore East Africa area."
Seychelles acreage ownership, post transaction: WHL (25%, operator) and Ophir (75%).
In October 2013, WHL received initial approval from the Seychelles regulatory authority, PetroSeychelles, for an extension to the existing Amended and Restated Petroleum Agreement (ARPA) over its Seychelles exploration interests.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.