Ireland-based Clontarf Energy has been awarded offshore Block 18 (EG-18) as part of the Equatorial Guinea 2017 bid round.
According to the company’s statement on Tuesday, Block 18 covers approximately 5,056 km2 of undrilled deep water acreage with several play types and the company’s focus will be on working on large structural and / or stratigraphic trap targets.
The bid terms include Clontarf Energy with 70% of production interest, 65% oil cost recovery, a $150,000 signature bonus, standard commerciality and production bonuses, normal land taxes.
Clontarf said that the production royalty is a standard 13%, rising to 16% on production over 100,000 barrels of oil daily.
The contractor interest starts at 80% through the first 40 million barrels of oil production, and falls according to a standard formula until output reaches 200 million barrels, the company added.
The initial work program is three years, with a possibility to extend, to include seismic acquisition plus one well if drillable targets are identified. The second sub-period is two years, with two allowable extensions of one year each accompanied by a work program. Profits tax is 35%.
Clontarf Energy Director, David Horgan, commented: “Clontarf has long been interested in Equatorial Guinea’s deep-water potential, which is among some of the most prospective in West Africa. EG-18 is part of the Northern Rio Muni Basin, which Clontarf has analysed. Our initial interest is in diverse Cretaceous sands plays, particularly a distal fan and turbidite channels visible on historic seismic.”
“Until the 2017 Bid Round, Equatorial Guinea was largely perceived as the bailiwick of US majors and Chinese National Oil Corporations. For the first time, the 2017 Bid Round sought new ideas and fresh approaches from the diverse community of oil independents, who have delivered so much elsewhere in West Africa.”
“The fine detail is expected to be finalized in early meetings scheduled with the Equatorial Guinea authorities.”
In related news, the oil major ExxonMobil also secured an offshore block in Equatorial Guinea.