Genel Energy acquires stake in oil block onshore Ethiopia

oil ethiopia-cfiesler flickrThe Adigala Block covers an area of 26,677 sq km and is located in the northeast of Ethiopia. (Image source: C Fiesler/Flickr)Independent oil explorer Genel Energy has announced that it has acquired a 40 per cent interest in the Adigala Block onshore Ethiopia

The deal will see Genel Energy acquire its non-operated stake in the block from New Age (African Global Energy) Limited for an undisclosed payment that will cover back costs and a contribution to the cost of a 2D seismic data acquisition programme to take place before the end of 2013, company sources said.

The Adigala Block covers an area of 26,677 sq km and is located in the northeast of Ethiopia, bordering Djibouti to the north and Somaliland to the east.

John Hurst, head of exploration of Genel Energy, said, “The Adigala Block farm-in is a natural extension of our exploration strategy, which seeks to acquire material equity positions in hydrocarbon basins with significant potential, as well as complementing our extensive interests onshore Somaliland where drilling is planned for 2014. We look forward to working with our new partners to high-grade the prospectivity on the block and add further depth and materiality to our exploration inventory.”

Genel Energy said that the integration of an existing 2D data reprocessed in 2012 has provided evidence that all the elements of a working petroleum system exist on the block.

Several large potential structural closures have also been identified on existing data. The planned 2D seismic and further technical work will help in refining these leads into drill ready prospects, the company added.

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