African Petroleum Corporation Limited has entered into an agreement with Buried Hill Africa Limited to farm-out a 10% interest in Block CI-509 offshore Côte d’Ivoire in return for Buried Hill funding 21.1% of the cost of the next exploration well to be drilled on Block CI-509 and an additional cash payment to African Petroleum Corporation representing 10% of past costs incurred.
Under the terms of the Farm-out Agreement, African Petroleum Corporation shall continue as Operator on the licence.
Completion of the Farm-out Agreement is subject to the satisfaction or waiving of certain conditions precedent, which, apart from one pertaining to government approval of the transfer, must be satisfied or waived no later than 1 November 2014 (unless extended in accordance with the Farm-out Agreement).
African Petroleum Corporation operates eight licences located in fast-emerging hydrocarbon basins offshore West Africa. The Company is actively seeking partners to share risk and reward across all assets. In line with this clearly communicated strategy, dialogue will continue with other potentially interested parties with a view of securing an additional farm-in partner for Block CI-509.
African Petroleum Corporation’s Chief Executive Officer, Dr Stuart Lake, commented: “We are very pleased to have secured an initial farm-in on Block CI-509. Alongside the adjacent Block CI-513, Block CI-509 forms part of our highly prospective acreage position offshore Côte d’Ivoire, and we look forward to announcing further farm-in deals on our West African offshore acreage in due course.”