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Clontarf Energy provides update on 1H19 operations

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Oilfield Technology,

Clontarf Energy has announced its unaudited financial results for the six months ended 30 June 2019.

A key focus for the period ended was ongoing discussions with the Ghanaian authorities about the ratification of the company's signed Petroleum Agreement on the Tano 2A Block offshore Ghana.

Ghanaian Tano 2A petroleum agreement

Ghana currently produces circa 200 000 bpd of oil from the Jubilee, and TEN oilfields. But potential output could increase dramatically with more pro-business policies. The latest discovery, by ENI, as announced in May 2019, confirms Ghana's prospectivity.

After a period of slow progress, Ghana's current NPP Government has galvanised the licensing effort. The administration is pro-development, and actively reviewing historic Petroleum Agreements, with a stated focus on early exploration, discoveries and output. During 2018 and 2019 the Ghanaian Ministry of Energy and the Ghanaian National Petroleum Commission considered the current re-application by Pan Andean Resources Ltd (which is owned 30% by Petrel Resources plc, 60% Clontarf, 10% local interests) over the original Tano 2A licence block acreage in the prospective Tano Basin, West Africa.

The Ghanaian authorities are now keen to resolve outstanding issues, and drive forward with the professional and prompt development of Ghana's oil and gas potential.

Two official bodies are reviewing dormant and pending petroleum agreements in Ghana: the Ministry of Energy and the National Petroleum Commission.

Accordingly, the authorities are reviewing existing Petroleum Agreements, as well as conducting a separate bid round.

Clontarf, and its partners, have also discussed with the authorities the possibility of working along with GNPC regarding the current 'Block 1' (subject to parliamentary ratification).

Separately, the company understands that Erin Energy Inc., a US company currently in Chapter 11, may soon relinquish or have abrogated that portion of the original Tano 2A acreage that Erin Energy Inc (formerly known as Camac Energy Inc.) was awarded in 2014 - which led to immediate legal action by Clontarf. This would open a path for Clontarf to recover all of the original 1532 km2 acreage.

Ghana's prospectivity highlighted

Ghana's prospectivity has been highlighted by yet another, recent oil discovery, subject to two confirmatory appraisal wells, of potentially 1 billion bbl, which could double Ghana's production by 2021.

What transformed such projects was much lower appraisal and development costs, a recovering oil price (currently US$68), development of the gas market, but especially the Ghanaian government's openness to practical development approaches.

Each such discovery yields multiple additional well targets which can, in turn, be subsequently drilled. In turn, each development spreads and lowers infrastructure costs.

The Directors believe all outstanding issues have now been resolved with GNPC on the Tano 2A Block, and understand that the signed Petroleum Agreement is now being sent to the Cabinet. All legal proceedings have been dropped and all issues resolved to our satisfaction.

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