In accordance with provisions in the farm-out agreement (FOA) between Ophir Seychelles (Areas 1,2, and 3) Ltd., PetroQuest International Inc., and WHL Energy Ltd. dated March 4, 2014, Ophir has elected to exercise its exit option.
In reference to the Deed of Novation, Amendment, and Restatement Agreement dated April 14, 2014, between the government of the Republic of Seychelles, PetroSeychelles Ltd., PetroQuest International Inc. (PQI), and Ophir (the petroleum agreement) relating to blocks 5B/1, 5B/2 and 5B/3, Ophir, in accordance with the terms of the petroleum agreement, has elected its exit option.
Under the terms of the petroleum agreement, the blocks revert back to the Seychelles government. PetroSeychelles has formally notified PQI that the petroleum agreement dated April 14, 2014, relating to blocks 5B/1, 5B/2, and 5B/3 is terminated.
WHL Energy is currently in discussions with the Seychelles government to continue its participation in the blocks and will update the market in due course of the outcome of these discussions.