PERTH, Australia – Government officials have granted approval for 88 Energy’s country subsidiary, DVM International, to divest from its interests in the Tarfaya block offshore Morocco. That interest has been transferred to Galp Energia.
Previous agreements executed by DVM, Galp and Office Nationale des Hydrocarbures et des Mines meant that the $3.4 million potential liability was considered a very low risk proposition; however, with the formal completion of the assignment, this potential liability has now been removed, 88 Energy said.
However, contingent liability between 88 Energy and Galp remains. This stipulates that Galp is entitled to a payment of US$3.4m in cash or 88 Energy stock if the Australaian company’s market capitalization reaches or exceeds $50 million before September 2021.
The Ralph Coffman jackup rig commenced drilling operations at the TAO-1 exploration well in June 2014 with Galp Energia as operator. TAO-1 failed to encounter hydrocarbon play, and was P&A’d.