African Petroleum, an independent oil and gas exploration company operating ten licences in West Africa, will need to wait some more to complete a farm-out deal for its block offshore Liberia.
The company, which in December signed a non-binding term sheet for the LB-08 offshore block with an unnamed London-based oil company, today said the deadline for the transaction completion has been delayed for March 20.
Explaining the delay, African Petroleum said: “This extension has been agreed in order to allow both parties the additional time to finalize and agree the transaction documentation.”
If and when the deal is successful, the London-based oil company will acquire a 50% net participating interest in the LB-08 licence in return for the payment of 50% of all future costs and expenditures relating to the LB-08 licence and a contribution to past costs and expenditures.
The LB-08 licence is situated in what African Petroleum describes as “a highly prospective region offshore Liberia.”
In an independent review of African Petroleum Corporation’s acreage conducted by ERC Equipoise Ltd in April 2014 and updated in January 2015, the estimated net unrisked mean prospective oil resources of LB-08 exceeds 2.6 billion barrels.