Africa-focused oil and gas company Ophir has entered into a farm-out agreement with Kosmos Energy covering the EG-24 exploration license in Equatorial Guinea.
Kosmos will acquire a 40% non-operated interest in Block EG-24, and will, in turn, will fully carry Ophir for the cost of a block-wide 3D seismic survey, during the 1st exploration period of the license.
Furthermore, Ophir said on Monday, Kosmos will partially carry Ophir for the cost of a well if the partners subsequently elect to drill a well in the 2nd period of the license. Kosmos will also pay its pro-rata share of past costs.
The start of the seismic operations conducted by Shearwater is scheduled to begin May 14, 2018, using the Polar Marquis vessel.
Completion of this transaction is conditional on approval by the Government of Equatorial Guinea. GEPetrol has a 20% carried interest in the EG-24 license.
Nick Cooper, Ophir CEO, said: “Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin. Kosmos now operates the adjacent exploration blocks (W, S & EG-21) as well as retains a 50% interest in Kosmos-Trident Equatorial Guinea Inc., which operates the neighboring Ceiba and Okume oil fields, which are up-dip from Block EG-24 and can offer infrastructure tie-backs if required. The farm-out reduces Ophir’s risk capital commitment and increases our monetization options in line with our disciplined exploration strategy.”