Ophir Energy to explore offshore Seychelles

Ophir Energy has entered into an agreement with WHL Energy, an Australian listed E&P company, to acquire a 75% operated interest in Blocks PEC-5B/1 and PEC-5B/2 located offshore the south of the Seychelles Islands.

In exchange for the acquired interest, Ophir will repay back costs to WHL totalling US$ 4 million, and will also fund the acquisition of 1500 km² of 3D seismic data. If the company chooses to retain its interest in the licences beyond mid-2015, it will pay further contributions towards the next exploration phase.

Seismic data results

The agreement secures a substantial, operated footprint in an oil-prone frontier basin in which a number of leads have already been identified on the existing 2D seismic data. The majority of these leads are located in water depths of less than 75 m, which should reduce drilling costs. The Seychelles is a relatively unexplored area, however oil shows have been observed in wells drilled to the west of the acquired acreage.

The acquisition is conditional on the government of Seychelles providing consent and approval of an amended and restated petroleum agreement under which the interest is held.

Comments

Nick Cooper, 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. Our initial analysis already highlights a portfolio of structural prospects and leads and we look forward to pursuing an active exploration programme in the area to test this thesis.”

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/exploration/04032014/ophir_explores_offshore_seychelles_117/