Camac Energy has signed a petroleum agreement with the government of Ghana covering the Expanded Shallow Water Tano (ESWT) block located in the Tano Basin, offshore Ghana
According to the company, the ESWT block size is 1,508 sq km in water depths ranging from 55 meters to 116 meters and contains three discovered fields: Tano North, Tano West and Tano South.
Significant quantities of oil and gas have been discovered in these fields, and drill stem tests carried out also established producibility of the reservoirs. The agreement requires that the partners evaluate the feasibility of economic development of the discovered fields over the next nine months.
Companies currently active in the Tano Basin include Tullow Oil, Kosmos Energy, Anadarko Petroleum Corporation and Hess Corporation, among others.
Camac Energy Ghana, an indirect 50 per cent-owned subsidiary of the company, is the operator of the ESWT block with a 60 per cent participating interest. GNPC Exploration Company Limited holds a 25 per cent participating interest and Base Energy Ghana, an indigenous Ghanaian company, holds a 15 per cent participating interest.
Ghana National Petroleum Company will initially have a 10 per cent carried interest and have the right to acquire an additional paying interest of up to 10 per cent following a declaration of commerciality.
"The Tano Basin offers the kind of high-reward oil prospects that we believe will enable us to build near-term value for our shareholders through the drillbit," said Kase L Lawal, chairman and CEO, CAMAC Energy.
"We are pleased to be partnering with the Ghana National Petroleum Corporation and Base Energy to pursue this opportunity, and we look forward to building a long-term relationship with the Ghanaian government as we work towards developing this asset," Lawal added.