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.