Noble farms into AGC Profond

Offshore staff

OSLO, Norway – Rocksource has negotiated a farm-down agreement with Noble Energy in the deepwater AGC Profond production sharing contract offshore Senegal and Guinea Bissau.

Rocksource will be reimbursed for past expenditure, and also will receive cover for promoted drilling costs.

The initial value of the transaction is $28 million, with $6 million more to follow should Noble and Rocksource opt to drill a second well following the Kora-1 well – due to spud shortly – and a further $20 million in the event of a discovery and follow-up appraisal drilling.

This deal is a three-way agreement between Rocksource, Noble, and current operator Ophir Energy, which will give Noble a 30% participating interest.

Noble will assume technical operating responsibility after the first well, and become full operator after the appraisal program has been approved.

Rocksource retains the right to earn 12.5% in the PSC, through participation in the first two exploration wells.

According to the company’s CEO Trygve Pedersen, the permit has at least 16 prospects with total un-risked resource potential of around 1.7 Bboe, led by Kora, estimated at around 450 MMbbl.

Five of the prospects have been tested via application of electromagnetic (EM) data acquisition. Processing and interpretation of these surveys revealed strong positive EM anomalies in three prospects.

06/08/2011

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