African Petroleum farm out updates

African Petroleum, an independent oil and gas exploration company, is seeking strategic partners on its ten licenses in Côte d’Ivoire, Liberia, Senegal, The Gambia and Sierra Leone in order to share risk and potential reward of their exploration program. The immediate focus is to conclude the transaction in Côte d’Ivoire, and to farm out assets in The Gambia and Senegal, so that funding opportunities can be aligned for the upcoming drilling commitments in areas with nearby significant discoveries. African Petroleum has provided following updates: 

Côte d’Ivoire

A large London listed oil and gas company has signed a binding joint bidding agreement with African  Petroleum to provide a framework for the incoming third party to secure a 45% operated interest in a production sharing contract (on terms to be agreed) covering African Petroleum’s Block CI-513 license area in Côte d’Ivoire. It is intended that African Petroleum will hold a non-operated interest of 45%, with the remaining 10% carried interest held by Petroci, the national oil company of Côte d’Ivoire. 

The two companies are working together towards completion of the transaction as soon as possible, and African Petroleum expects to make further announcements, including the identity of the third party and further details of commercial terms, in due course as progress is made.

The Gambia and Senegal

African Petroleum is in advanced farm out discussions with numerous interested parties across its assets, including The Gambia and Senegal. The recent exploration success of third party operators within this area, namely Cairn Energy in Senegal and Kosmos in Mauritania, has led to a significant increase in the level of interest in these assets. There has been a 60% increase in visits to African Petroleum’s data room during 1H 2015 from companies, a number of whom have confirmed their interest in pursuing a transaction.   African Petroleum seeks to attract binding offers as soon as possible.  

Liberia

A non-binding term sheet with a private London based independent oil and gas company to farm in to the African Petroleum’s 100% owned Liberian LB-08 license has now lapsed due to lack of progress within the extended timeframe granted to the third party.

“It was disappointing that the LB-08 term sheet lapsed, but this was a result of external issues faced by the third party rather than any issues with our asset, and our intention remains to seek a high quality partner for this highly prospective acreage,” said Stuart Lake, CEO of African Petroleum.

Image: Map/African Petroleum