African Petroleum has provided an update regarding its licence interests in The Gambia and Senegal, West Africa.
Regarding an extension to the previously announced exclusivity agreement covering the SOSP licence in Senegal and the A1 and A4 licences in The Gambia, the relevant parties have agreed to not extend the exclusivity agreement, which expired today, 20 July.
Due to recent developments whereby the Senegalese authorities have expressed a willingness to proceed with the SOSP licence extension upon the company securing a farmout, and with delays in The Gambia, the exclusivity agreement was viewed as too restrictive.
Thus, African Petroleum considered it to be in its best interests to allow the exclusivity agreement to lapse, enabling it to enter discussions with other interested parties in its SOSP licence while it seeks to resolve the situation in The Gambia.
Since announcements in early July 2017 regarding the A1 and A4 licences in The Gambia, African Petroleum has been engaged in dialogue with Gambian officials with a view to identifying a solution that is in the best interest of all stakeholders. The company confirms that one of its local representatives met with the Minister for Petroleum and Energy and Permanent Secretary on 6 July 2017, and a delegation from African Petroleum travelled to The Gambia for a meeting with President Barrow in Banjul on 13 July 2017.
Further to the meeting, it is the understanding of the management team that the government is considering African Petroleum’s proposal regarding the licences. It is anticipated that the company will receive formal feedback and clarity on the situation from the government in early August 2017.
In the meantime, African Petroleum has been approached by other industry players who are interested in joining the company in the A1 and A4 licences when the situation with the Gambian government is resolved.
The Senegalese authorities are currently considering the c African Petroleum’s proposal to extend the SOSP licence for a period of 18 - 24 months to allow time to acquire 3D seismic and to drill an exploration well on the block.
Any such extension is conditional on African Petroleum bringing in a suitable partner on the licence and to this end, the management team will commence discussions with a number of companies who had expressed interest in farming into SOSP but were restricted from entering into commercial negotiations as a result of the exclusivity agreement that had been in place since mid-April 2017.
The SOSP licence continues to generate industry interest, and the company hopes to finalise a standalone farm-out transaction on the SOSP licence to enable the licence extension to be granted.
African Petroleum continues to reserve its rights on the ROP licence while it negotiates the SOSP extension.
Read the article online at: https://www.oilfieldtechnology.com/exploration/20072017/african-petroleum-considers-its-licence-interests-in-the-gambia-and-senegal-west-africa/