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NaveenS
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Product Manager - Derrick Petroleum Services. Working in Oil & Gas Industry for 5+ years. Contributed significantly for Database development for Upstream transactions (http://www.1derrick.com/ma-database). Initially worked as a 'Research Analyst' at Reuters. LinkedIn Profile:... More
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  • WHL To Farm-Out 75% In Seychelles Acreage To Ophir 0 comments
    Mar 4, 2014 1:38 AM | about stocks: WHLRF, OPGYF

    WHL Energy announced that it has signed an agreement with Ophir Energy to farm-out 75% interest in its wholly-owned exploration acreage off Seychelles.

    Transaction details

    · 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

    Asset details

    · 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.

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