Cap Energy PLC, a company focused on the exploration, production, and development of oil and gas in sub-Saharan Africa, has acquired an indirect interest in the oil and gas exploration licence on the Block Djiffere (the “Djiffere Licence”), offshore Senegal.
The Djiffere Licence area covers approximately 4,459 km² in shallow waters in the Senegal Basin off the West African coast and is adjacent to the Block Rufisque Offshore area operated by Cairn Energy PLC.
On 19 February 2014, Sencap Limited , a newly formed subsidiary of the Company, acquired from Trace Atlantic Oil Limited (“TAOL”) a 49 per cent interest in TAOL Senegal (Djiffere) Limited (“TAOL Djiffere”), the company holding the Djiffere Licence. TAOL is the owner of the remaining 51 per cent interest in TAOL Djiffere and also the operating partner in TAOL Djiffere. Sencap is wholly owned by Cap.
TAOL Djiffere is currently preparing a 2D seismic survey over 4,000 km² of the Djiffere Licence area in order to delineate its prospectivity. The results of this survey are expected to be available at the end of the current year.
The total consideration for the acquisition of the 49 per cent interest in TAOL Djiffere was USD 150,000. Cap has also paid USD 461,461 to TAOL Djiffere in respect of 49% of TAOL Djiffere’s historic costs. These amounts have been satisfied in cash from Cap’s existing resources.
Lina Haidar , Cap’s Chief Executive, said: “The acquisition of the Djiffere interest is an important step forward in the development of our operations in the sub-Saharan region and complements our existing presence offshore Guinea-Bissau. We continue to further our strategic alliance with Trace Atlantic by targeting new exploration frontiers through our combined operational, technical and commercial skills in the region and by accessing, through Trace Atlantic, the proprietary technologies of Rex Technology Management Ltd. (including Rex Virtual Drilling) to delineate prospective sub-Saharan acreage.
We look forward to updating shareholders on progress at these activities and on further expansion of our portfolio in due course.”