Ophir Energy signs farm-out deal with OMV for offshore blocks in Gabon

offshore gabon-strocchi flickrOMV will acquire non-operated interests in four offshore Gabonese blocks. (Image source: Strocchi/Flickr)Ophir Energy has entered into a farm-out agreement with Austria’s OMV for its four deepwater offshore blocks in Gabon

Under the terms of the agreement, OMV will acquire 30 per cent non-operated interests in Manga and Gnondo Blocks and 10 per cent non-operated interests in Mbeli and Ntsina Blocks.

On completion, Ophir Energy’s retained stakes would be 70 per cent operated interests in the Manga and Gnondo Blocks and 40 per cent operated interests in the Mbeli and Ntsina Blocks, the company said.

OMV is expected to pay previous costs and a promoted share of the well costs on the Padouck Deep, Affanga Deep and Okala as well as the cost of two additional wells, along with the cost of 3D seismic surveys on the blocks.

Nick Cooper, CEO of Ophir Energy, said, “We are delighted to have agreed this deal with OMV across our acreage position in Gabon. It brings a well-financed, experienced and motivated partner into our Blocks and is in-line with our strategy of mitigating exploration risk ahead of drilling. Our retained interests expose shareholders to significant upside in the event of success, especially the pre-salt play on the Mbeli and Ntsina Blocks with the Padouck Deep well due to commence in February 2014.”

However, the completion of the transaction is conditional to approval by the government of Gabon, Ophir Energy added.

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