AP will retain a 45% stake with Petroci (the national oil company of Côte d’Ivoire) holding a 10% carried interest.
In addition, Ophir will contribute $16.9 million toward AP’s back costs for exploration to date on the block.
The production-sharing contract incorporates adjustments to fiscal terms and holding costs agreed with the government. These reflect the current oil price environment and the outlook for development of the deepwater prospects interpreted from 3D seismic over the concession.
Going forward, an exploration well must be drilled by end-June 2017. Ophir will also pay an additional 10% (above its participating interest) of its share of costs for this well.
Earlier this month, AP’s subsidiary European Hydrocarbons Ltd. (EHL) entered the first extension period for the SL-03 license offshore Sierra Leone, which expires on April 23, 2017.
To date EHL has fulfilled all obligations, including acquisition of 2,500 sq km (965 sq mi) of 3D seismic. Detailed mapping of this data has identified various prospects.
Of these, the Altair Channel (to the east) exhibits a high amplitude seismic expression within a stratigraphic trap. ERC Equipoise assesses net un-risked prospective oil resources for the Altair prospect at 434 MMbbl.
The next-phase program includes further analysis of the seismic data prior to a commitment to drill an exploration well.
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