Oryx Petroleum buys stake in AGC Central license
Oryx Petroleum Corporation Limited has acquired an 85% interest in the AGC Central license located in the joint development offshore area between Senegal and Guinea Bissau (“AGC”).
Commenting today, Oryx Petroleum’s Chief Executive Officer, Michael Ebsary, stated:
“We are excited about expanding our presence in the AGC. The low cost addition of a new play type, one that others are pursuing in Senegal with some recent success, gives us another way to succeed in the AGC. We aim to build a substantial business in the region.”
Signing of Production Sharing Contract
The Group has signed a new PSC covering the AGC Central license area in the joint development offshore area between Senegal and Guinea Bissau. The PSC has been approved by decree from the Haute Autorite, the Presidencies of Senegal and Guinea Bissau, who are responsible for administering oil exploration activities in the AGC.
The license covers 3,150 square kilometres in water depths ranging from 100 metres to 1,500 metres, an area that was previously included in the AGC Profond license area. Previous operators in the AGC Profond license area have focused activities on the deep water portions of the license.
Oryx Petroleum will hold an 85% participating interest and serve as Operator with L’Entreprise AGC holding the remaining 15%. Terms of the Joint Operating Agreement between partners and the PSC largely emulate the terms for the AGC Shallow license area. Notably, L’Entreprise AGC’s share of costs will be carried through exploration and they will have a back-in right for an additional 5% paying interest in the license upon declaration of commerciality.
A signature bonus was paid in conjunction with the signing of the PSC. The PSC includes three exploration periods of three, two and two years. Commitment in the initial three year exploration phase is the acquisition of 750 square kilometres of 3D seismic data.
Based on available technical data Oryx Petroleum has identified a carbonate edge play type with potential Cretaceous clastic/carbonate structures.. The play type is similar to plays being pursued in similar water depths in Senegal by other industry participants. The play type also shares some commonalities in terms of a working petroleum system with play types that Oryx Petroleum has identified in the AGC Shallow license area.
AGC Shallow License Area
Oryx Petroleum also holds an 85% participating interest in and serves as Operator of the AGC Shallow license area, a 1,700 square kilometres license area in water depths up to 100 metres. Based on technical data the Group has identified two play types in three structures: sub-salt related structural traps in the Albian and seismic amplitude prospects in the Maastrictian. 3D seismic data has been acquired, processed and analyzed and the Group is finalizing drilling plans with the drilling of the first exploration well expected in the first half of 2015.