SOCO, PA Resources Enter Farm-In Agreement (Congo)
SOCO announces that it has entered an agreement with PA Resources Congo SA, a wholly owned subsidiary of PA Resources AB, to farm-in to a 60% working interest in the Mer Profonde Sud permit, offshore the Republic of Congo (Brazzaville). The Mer Profond Sud permit comprises the exploration area of the licence but excludes the Azurite Field.
In return for carrying certain of PA Resources Congo SA’s costs, SOCO will assume a 60% working interest in the Mer Profonde Sud exploration area as operator and will drill an exploration well in the remaining licence period. The well will test a different structural setting and play, identified from recent seismic reprocessing and subsurface re-evaluation, from the other wells already drilled on the Block and targeting similar reservoirs that produce from offsetting fields in the Congo and in Angola/Cabinda.
The transaction is subject to the necessary partner and regulatory approvals including both the assignment of the interest to SOCO and renewal into the third and final period of the licence. Following approval, the partners would look to drill the well in 2014-2015.
Following completion of the transaction, PA Resources Congo SA will retain a 25% working interest in the licence, whilst the Congolese state oil company, SNPC, will retain its current 15% interest.
Ed Story, President and Chief Executive of SOCO, commented:
“As an established Operator in Congo (Brazzaville), this is a natural step for us. Using our knowledge of the basin, and the additional work from PA Resources, we were able to recognise an untested prospect in a different structural setting from that already tested. The adjacent production from the same reservoirs as we are targeting adds to our optimism about the potential of this licence.”
Press Release, November 04, 2013