Somalia: Wildcat drilling possible by mid-2011

By OGJ editors
HOUSTON, Jan. 17
– Amended production sharing agreements for the Dharoor Valley and Nugaal Valley exploration areas could lead to drilling by mid-2011, said Africa Oil Corp., Vancouver, BC.

The Puntland Petroleum & Mineral Agency extended the PSAs for a further 12 months to Jan. 17, 2012. Africa Oil, Range Resources Ltd., and Lion Energy Corp. hold the PSAs.

The amended PSAs obligate Africa Oil to spud at least one exploratory well in the Dharoor Valley Exploration Area by July 27, 2011. A second exploratory well is required to be spudded in either area at Africa Oil’s option by Sept. 27, 2011. Africa Oil said it is in advanced talks with a drilling contractor.

The government has approved farmout to Red Emperor Resources NL of a 20% interest in the PSAs. Red Emperor is committed to pay a disproportionate share of the costs related to Africa Oil’s drilling commitments in the first exploration period.

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


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...