African Petroleum Corporation has entered into an agreement with The Government of the Republic of The Gambia to reinstate the company’s Alhamdulilah Licence Block A1 and Licence Block A4 (the “Gambia Licences”), and settle all prior issues concerning the Gambia Licences including the discontinuation of arbitration proceedings.
To remind, the Gambia in January terminated the blocks claiming that African Petroleum violated the country’s petroleum law.
According to African Petroleum, the reinstatement of the Gambia Licences is a significant and positive step for the company, particularly following the recent oil discoveries by Cairn Energy in Senegal. African Petroleum Corporation has also agreed to a revised initial exploration period that will expire on September 1, 2016 in return for a commitment to drill an exploration well on one of the Gambia Licences and reprocess 3D seismic on Licence Block A4 prior to September 1, 2016.
“The Company looks forward to continuing its exploration efforts on this highly prospective acreage, particularly in light of the recent oil discoveries made by Cairn Energy nearby in Senegal.”
African Petroleum Corporation holds a 100% interest in the Gambia Licences through its wholly owned subsidiaries African Petroleum Gambia Limited and APCL Gambia B.V.
African Petroleum Corporation’s Chief Executive Officer, Dr Stuart Lake, commented: “We are delighted that The Government of the Republic of The Gambia has reinstated Alhamdulilah Licence Block A1 and Licence Block A4. The Company looks forward to continuing its exploration efforts on this highly prospective acreage, particularly in light of the recent oil discoveries made by Cairn Energy nearby in Senegal.
“These two discoveries made at FAN-1 and SNE-1 are reported to have proved excellent quality reservoirs, with the SNE-1 well analysis showing net oil pay of 36 metres and oil of 32° API from samples of gas, oil and water recovered to surface. According to this announcement, preliminary estimates suggest that the SNE-1 discovery is highly likely to be a commercial discovery.”