Tullow Oil subsidiary — Tullow Kudu Limited — will participate in the joint venture in Namibian Licence PEL 37 to drill one exploration well, which is subject to identifying a drillable prospect
To date, four large turbidite prospects and three large leads have been mapped in detail. The prospects have potential for combined prospective resources of more than 900mn barrels of oil (recoverable).
The PEL 37 has estimated prospective resources of 8.7bn barrels of oil.
So far, Tullow Oil has spent approximately US$34mn on the exploration programme, including Pancontinental Oil & Gas’ share of expenditure carried under farm-in.
In 2013, Pancontinental Oil & Gas had successfully negotiated a farm-in agreement with Tullow Oil whereby a 65 per cent interest would be transferred to the latter in exchange for the following work programme — 3,000 sq km of 3D seismic and 1,000 km of 2D seismic; processing of the seismic acquisition data; interpretation of the data acquired; and fully funding of the costs of one exploration well with no expenditure ‘cap’ to not less than 3,500 metres below the sea surface, subject to identifying a drillable prospect.
The seismic programme has been completed with the 3D covering approximately 17 per cent of the permit.