The Congolese government has approved a farm-out deal between PA Resources and SOCO international.
PA Resources said that the designation of a 60 percent working interest in the Mer Profond Sud exploration area to SOCO, announced in November last year, has now received governmental approval, subject to regulatory approval to enter into the third and final period of the licence. PA Resources said that the partners expect to drill an exploration well by early 2015.
Following the completion of the transaction PA Resources will hold a 25 percent working interest in the block, while the Congolese state oil company, SNPC, will retain its current 15 percent stake in the area.
The Mer Profond Sud permit includes the exploration area of the licence but excludes the Azurite field. In return for carrying certain of PA Resources’ costs, SOCO will assume a 60% working interest in the MPS exploration area as operator and will drill an exploration well in the remaining licence period.