OMV Farms Into Ophir Energy’s Deepwater Blocks in Gabon
Ophir Energy plc has entered into a comprehensive farm-out agreement with OMV covering its deepwater offshore blocks in Gabon.
Under the terms of the agreement, OMV will acquire 30% non-operated interests in the Manga and Gnondo Blocks and 10% non-operated interests in the Mbeli and Ntsina Blocks. On completion, Ophir’s retained stakes will be 70% operated interests in the Manga and Gnondo Blocks and 40% operated interests in the Mbeli and Ntsina Blocks.
In consideration OMV will pay past costs and a promoted share of 1) the well costs on the Padouck Deep, Affanga Deep and Okala wells, 2) the cost of two additional wells and 3) the cost of 3D seismic surveys which are planned across the Blocks. Further conditional promotes are payable in the event of success with the Padouck Deep or Okala wells.
Completion of this transaction is conditional on approval by the Government of Gabon.
Nick Cooper, CEO at Ophir, 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.”
Press Release, December 18, 2013