African Petroleum Corporation (APC) has entered into an agreement with Buried Hill Africa Limited (Buried Hill) to farm-out a 10% interest in Block CI-509 offshore Côte d’Ivoire.
The farm-out has been offered in return for Buried Hill funding 21.1% of the cost of the next exploration well to be drilled on Block CI-509 and an additional cash payment to African Petroleum Corporation representing 10% of past costs incurred.
Conditions
Under the terms of the farm-out, African Petroleum Corporation will continue as operator of the licence. Completion of the agreement is subject to certain conditions precedent.
African Petroleum Corporation operates eight licences located in hydrocarbon basins offshore West Africa.
Comments
APC’s CEO, Stuart Lake commented: "We are very pleased to have secured an initial farm-in on Block CI-509. Alongside the adjacent Block CI-513, Block CI-509 forms part of our highly prospective acreage position offshore Côte d’Ivoire, and we look forward to announcing further farm-in deals on our West African offshore acreage in due course."
Adapted from press release by Katie Woodward