African Petroleum has agreed for an additional extension of a non-binding term sheet until 20 June 2015 with a UK-based exploration and production firm operating LB-08 Licence offshore Liberia
In January this year, an unnamed oil and gas firm had agreed to enter into a mutually agreed contract with African Petroleum to acquire 50 per cent of net participating interest in the LB-08 Licence in return for the payment of 50 per cent of all future costs and expenditures related to the licence and also committed to contribute to past costs and expenditures of the licence.
In an independent review of African Petroleum’s acreage conducted by ERC Equipoise in April 2014 and updated in January 2015, the estimated net unrisked mean prospective oil resources of LB-08 licence exceeds 2.6bn barrels.
Completion of the farm-in transaction as contemplated by the term sheet is subject to approval from the Liberian government and must be satisfied by 30 June 2015, African Petroleum said.
