London-based independent Tullow Oil agreed to acquire up to 40% interest in the Cooper block, block 2012A, in the Walvis basin offshore Namibia, Eco (Atlantic) Oil & Gas announced on 17 July 2014.
The terms of the farm-in includes Eco Atlantic giving Tullow a 25% working interest for carrying the cost to execute and process 3D seismic program as well as reimbursement of 25% of Eco Atlantic’s past costs.
If Tullow decides to participate in an exploratory drilling program, Tullow will be transferred an additional 15% working interest in the block, in return for a full carry of Eco Atlantic’s share of costs to drill an exploration well on the block and the reimbursement of an additional 15% of the past costs.
This farm-in, in conjunction with a prior farm-out to Azimuth (a subsidiary of AziNam) for 20%, nets Eco Atlantic a 100% carry of all costs on an expanded 1000sq km 3D seismic survey and interpretation. The seismic program is expected to begin 4Q 2014.
“Attracting Tullow is exciting for us,” said Colin Kinley, COO and director of Eco Atlantic. “We have a highly credible team of upstream industry experts already within our own members and partners in AziNam and Namcor, and now we are bringing fresh eyes into the block who have the unique interpretation strength to find oil, drill wells and bring it on line quickly and economically.”
Partner AziNam also issued a statement on the Tullow farm-in.
“We believe that the Namibian offshore region offers an exciting opportunity to generate world-class prospects leading to high impact oil and gas discoveries,” said AziNam Managing Director, David Sturt. “These targets have only been recently identified following both the application of modern exploration techniques offshore Namibia and increased knowledge from exploration success in analogous parts of the South Atlantic margin.”
Eco Atlantic operates the Cooper block with 70% interest. Its partners include AziNam (20%), the National Petroleum Corp. of Namibia (Namcor) (10%). Following the first transfer, Eco Atlantic will hold a 45% interest; Tullow 25% interest; and AziNam and Namcor will retain their respective working interests.
In Namibia, Tullow operates production licenses 003 and 0037. In production license 003, which covers 4567sq km, Tullow (31%) is focused on evaluating development options for the Kudo gas field, located 170km offshore the southwest coast of Namibia. In September 2013, Tullow farmed-in to production license 0037 (65%), which covers 17,295sq km in the Walvis basin offshore northern Namibia.
Other companies that are exploring off Namibia includes Repsol, which recently drilled the deepwater Welwitschia-1A well in Walvis Bay, using the Rowan Renaissance drillship. The Welwitschia-1 prospect is targeting net risked recoverable resources of 496MMboe with a total estimate of about 1.6billion boe.
Image: Eco Atlantic
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