LONDON – Ophir Energy has agreed to acquire a 75% operated interest in two blocks off the Seychelles Islands in the Indian Ocean from WHL Energy.
WHL, an Australian-listed E&P company, operates blocks PEC-5B/1 and PEC-5B/2 to the south of the islands.
Ophir will pay WHL’s back costs to date and fund acquisition of 1,500 sq km (579 sq mi) of 3D seismic data. If Ophir opts to retain its interest in the concessions beyond mid-2015, it will pay more contributions toward the next exploration phase.
The company says the exploration area is in an oil-prone frontier basin where numerous leads have been identified on existing 2D seismic. Most are in water depths of less than 75 m (246 ft).
Although the region around the Seychelles has barely been explored, there have been oil shows in wells drilled west of the acquired acreage.
Ophir’s transaction is pending approval from the islands’ government for an amended and restated petroleum agreement.