African Petroleum nears farm-out offshore Liberia

Offshore staff

LONDON – An unnamed London-based independent has agreed to farm into 50% of African Petroleum’s LB-08 offshore license.

In return the farminee has consented to pay 50% of all future costs relating to the LB-08 license and a contribution to past expenditure.

An independent review by consultants ERC Equipoise this April assessed net unrisked mean prospective oil resources in the license at more than 2 Bbbl.

There is an oil discovery in the adjacent license and proof of a working hydrocarbon system in the central Liberian basin.

Completion of the transaction remains subject to various conditions, including approval from the Liberian government. A decision must be taken by Jan. 29, 2015.

African Petroleum’s CEO Dr. Stuart Lake said: “Should the farm-in transaction complete, the incoming third party will bring a breadth of knowledge and experience to the partnership and will allow the company to continue its exploration program in its highly prospective acreage in Liberia benefiting from the falling operating costs brought on by a lower oil price.” 

The company continues negotiations with potential partners for its other licenses, he added.

12/23/2014

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...