Further to the Company’s announcement of 21 December 2015, African Petroleum, an independent oil and gas exploration company with ten licences in five countries offshore West Africa, has announced that the new Production Sharing Contract (PSC) with Ophir Energy plc covering the Company’s CI-513 licence area in Côte d’Ivoire is now effective, having been signed by the final government Ministry.
Key highlights of the new PSC are as follows:
– Ophir Energy will make a contribution of US$16.9 million towards African Petroleum’s back costs in relation to the block
– Ophir Energy holds a 45% interest and is Operator, African Petroleum holds a 45% interest and Petroci (the National Oil Company of Côte d’Ivoire) holds a 10% carried interest
– Extension to previous minimum work commitments on the block
– The transaction represents successful achievement of key corporate milestone
Jens Pace, CEO of African Petroleum said in a statement that: “We are pleased to have received the final ministerial signature on this new CI-513 PSC with Ophir Energy in Côte d’Ivoire and complete this important transaction. We look forward to working with our new partner Ophir Energy and Petroci to jointly explore the potential of this exciting block”.
“Completion of this transaction enables us to shift our full focus onto our ongoing and progressive discussions with potential partners for our world class acreage in Senegal and the Gambia. As highlighted by this transaction with Ophir Energy, industry appetite remains for world class exploration acreage and our assets in these countries are most certainly in this category. As such, we have a reinforced confidence in our ability to conclude negotiations in the near term and look forward to updating our shareholders on progress in due course,” Pace added.