CAMAC awarded blocks offshore Gambia

CAMAC Energy Inc, Gambian Ministry of Petroleum, offshore, blocks, Gambia, A2, A5CAMAC has entered into an agreement with Gambia regarding the provisional award of two offshore exploration blocks. CAMAC Energy Inc. has entered into an agreement with the Gambian Ministry of Petroleum regarding the provisional award of two offshore exploration blocks

The blocks, A2 and A5, are in water depths of between 600-1,000 m. CAMAC Energy will be the operator with 85 per cent interest in the blocks, which cover a total surface area of 2,666 sq km. Gambia National Petroleum Company will be carried at 15 per cent through first oil.

The agreement sets forth the negotiated fiscal terms and work programme for the two blocks, and this award is subject to submission of an Environmental Impact Assessment (EIA) and signing of final petroleum exploration licenses within 90 days. The EIA report has now been submitted by the company, and signing of the license documents is expected in the next few weeks.

The two exploration blocks are located in the highly prospective West African Transform Margin, home to several recent major discoveries in Ghana (Jubilee, Odum) and Sierra Leone (Venus, Mercury). In addition, in 1979 Chevron drilled the Jammah-1 well on the basis of sparse 2D data in block A2. The well had gas shows, thereby establishing the presence of hydrocarbons in the area. More recently, extensive 3D seismic shot on the two Gambian blocks A1 and A4, immediately west of the blocks A2 and A5, has revealed a number of material prospects and leads according to the operator, African Petroleum Corporation Limited.

According to African Petroleum's third party estimates, one of the prospects, the Alhamdulilah prospect, has potential mean unrisked resources of approximately 500mn barrels.

"We are extremely pleased to be awarded these two blocks. Gambia's blocks A2 and A5 represent highly sought after assets in one of the world's most exciting hydrocarbon provinces, the West African Transform Margin,” said Chairman and CEO, Dr. Kase Lawal. “Today's announcement demonstrates additional progress in our frontier exploration strategy. It also reaffirms the Company's reputation as a value added oil and gas partner to National Oil Companies in Africa."

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