African Petroleum Corporation will farmout 10 per cent of its interest in Block CI-509 offshore Côte d’Ivoire to Buried Hill Africa Limited in return for the latter funding 21.1 per cent of the cost for the next exploration well
According to the terms of the contract, an additional cash payment to African Petroleum Corporation representing 10 per cent of past costs incurred will also be made.
The company said that the completion of the farmout deal 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.
African Petroleum Corporation operates eight licences located in the hydrocarbon basins offshore west Africa. The company is also actively seeking partners to share risk and reward across all assets.
Stuart Lake, CEO of African Petroleum Corporation, said, “We are 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.”