Afren PLC, an independent oil and gas company focused on establishing itself as the leading pan-African exploration and production company, has announced the acquisition of two licence interests in Gabon.
Afren announces the acquisition of two companies which own a 12.86% participating interest in Themis Marin and Iris Marin blocks Exploration and Production Sharing Contracts offshore Gabon.
Afren has entered into an agreement with Ascent Resources plc (“Ascent”) to acquire two wholly owned subsidiaries, Gabon Investments (Iris Marin) Pty Ltd and Gabon Investments (Themis Marin) Pty Ltd. These companies hold a 12.86% Participating Interest in the Iris Marin Exploration and Production Sharing Contract (“EPSC”) and in the Themis Marin EPSC respectively.
Under the terms of the agreement Afren will issue 404,350 new ordinary shares in Afren to Ascent in return for its 12.86% interest in Themis Marin and Iris Marin blocks. Afren will also reimburse Ascent for £684,000 of past costs. In addition, Ascent will be granted a net profit interest of 1.75% of any profit generated under the EPSCs.
The Themis and Iris permits are both operated by Sterling Energy plc and cover two shallow water exploration concessions offshore Gabon. The Iris Marin concession covers 902 square kilometers and is situated along the Gabon coast adjacent to the Shell operated Gamba field. The Themis Marin concession covers 607 square kilometers and borders the northern edge of the Etame Marin permit. Both the Themis and Iris concessions are surrounded by proven oilfields, and are close to pipelines and production infrastructure. The principal target on both the Iris and Themis blocks is the Gamba Sandstone reservoir, which is productive in the nearby Etame field.
The Iris Marin EPSC was signed in November 1999 and comprises three exploration terms, each of approximately three years duration. The property is currently in the second exploration term, with an exploration commitment well planned to be drilled in August 2005. The co-venturers have acquired 1,453 km of 2D seismic and 332 km2 of 3D seismic.
The Themis Marin EPSC was signed in November 1999 and comprises two exploration terms of approximately three years each. The property is currently in the second exploration term, with the first exploration commitment well expected to be drilled in early 2006. The co-venturers have acquired 1,541 km of 2D seismic and 296 km2 of 3D seismic and are currently processing a recently acquired 216 km2 3D seismic survey in the southern portion of the permit.
Brian O’Cathain, Chief Executive of Afren commented:
“We are delighted to announce this acquisition of our first licence interests in Gabon. In our view both the Themis and Iris permits have significant potential and fit in with our strategy of acquiring exploration licences with low risk exploration upside in West Africa, close to existing facilities.”
