Ophir Energy has clinched a farm-out agreement with Kosmos Energy covering the EG-24 exploration licence in Equatorial Guinea.
Kosmos will cover Ophir’s costs on a block-wide 3D seismic survey during the first exploration period of the licence in exchange for a 40% non-operated interested.
Kosmos will also partially carry Ophir for the cost of a well.
And Kosmos will pay its pro-rata share of past costs.
Shearwater’s Polar Marquis vessel will start shooting seismic today.
Completion of the transaction requires the approval of the Government of Equatorial Guinea.
GEPetrol has a 20% carried interest in the EG-24 licence.
Ophir chief executive Nick Cooper said: “Kosmos is a logical partner for us in EG-24 as its team have considerable prior experience of the Rio Muni Basin.
“Kosmos now operates the adjacent exploration blocks (W, S & EG-21) as well as retains a 50% interest in Kosmos-Trident Equatorial Guinea Inc., which operates the neighbouring Ceiba and Okume oil fields, which are up-dip from Block EG-24 and can offer infrastructure tie-backs if required.
“The farm-out reduces Ophir’s risk capital commitment and increases our monetisation options in line with our disciplined exploration strategy.”