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  • WHL Energy Signs Fortune 500 Firm As Potential Seychelles Partner 0 comments
    Mar 25, 2013 11:19 PM

    WHL Energy (ASX: WHN) has executed a highly anticipated non-binding Letter of Intent with one of the top 100 companies on the Global Fortune 500 list for a potential farm-in to its Seychelles oil and gas assets.

    Managing director Steve Noske noted the potential partner has substantial production and technical exploration experience and assets that are in line with the company's stated goal of partnering with an organisation with the capacity to help take the valuable Seychelles asset forward.

    He cautioned that there were a number of pre-conditions to be met before any legally binding Farmin Agreement is signed.

    Letter of Intent

    The non-binding Letter of Intent outlines the following:

    - A timetable for discussions with the Government of the Republic of the Seychelles necessary to progress the proposal;
    - Iindicative commercial principles in respect of the potential farmin to assist those discussions;
    - Principles for a forward work programme for the Seychelles oil and gas assets; and
    - The conditions to a process for progressing the negotiation of fully-termed binding agreements (including a Farmin Agreement and Joint Operating Agreement (JOA)).

    The LOI is initially non-binding and there is no guarantee that these discussions will result in a legally binding agreement to farm-in or that all the conditions precedent to such an agreement will be satisfied.


    WHL had late last year ratified the amended Petroleum Agreement with PetroSeychelles and the Seychelles Government.

    This has reduced the number of wells it is required to drill to one from the original two wells.

    Importantly, this provides WHL with greater flexibility to advance its technical work on the acreage and prepare for the introduction of industry partners and drilling.

    WHL has a strong exploration portfolio that includes some 23 prospects and leads in the exploration acreage with estimated total mean prospective resources of around 3.5 billion barrels.

    Work has also shown that the Seychelles geology shares strong similarities to Madagascar, which is an oil prone system, and has potential source rocks that are oil mature.

    To top it off, there is an increasing level of international interest and activity in the Seychelles, including Afren plc commencing a major 3D seismic acquisition program in its nearby Seychelles blocks.


    Bringing in a Fortune 500 company as a potential partner highlights the attractiveness of WHL's Seychelles assets and will significantly reduce exploration and development risks.

    As at 31 December 2012, the company had $8.2 million cash on hand.

    Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.

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