Hardy Oil and Gas plc has executed an agreement to farm-out a 20 per cent. interest in the Oza field located onshore Nigeria.
The farmee is Emerald Energy Resources Limited ("Emerald"), a prominent Nigerian owned company, which operates the Nigerian offshore exploration block OPL 229. Hardy will retain a 20 per cent. working interest in the field with the operator, Millenium Oil and Gas Company Limited, holding the remaining 60 per cent working interest.
Under the terms of the farm out agreement, Emerald is assuming Hardy's obligation to fund the initial work programme of the Oza field. The proposed initial work programme encompasses the installation of over 15 kilometres of pipeline, gas compression, and various processing equipment requiring an estimated capital expenditure of US$15 million. The farm out is subject to government approval.
In addition, Memoranda of Understanding have been executed with Emerald regarding an integrated gas utilisation project and other upstream opportunities in Nigeria.
Commenting on Hardy's Nigerian strategy, Mr. Sastry Karra, Chief Executive, said:
"We believe that the Niger Delta offers attractive investment opportunities and the Company will look to further participation in this region on a selective basis. Hardy's Nigerian strategy is to pursue opportunities offering low cost development projects in onshore and near-shore Nigeria."
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