Lundin Petroleum AB announces the signing of a farmout agreement with New Age (Global African Energy) Limited ("New Age") for the production sharing contracts (PSCs) in the Federal Democratic Republic of Ethiopia.
Lundin Petroleum will transfer a 15 percent license interest to New Age, in the PSCs covering Blocks 2, 6, 7 and 8 located in the onshore Ogaden Basin, southern Ethiopia and a 50 percent interest in the PSC covering the Adigala Area, northern Ethiopia. New Age will pay a disproportionate share of the costs related to the 2D seismic programmes to be carried out on the blocks, as well as its interest share of Lundin Petroleum's past costs and other ongoing costs. Lundin Petroleum will remain as operator of all of the Ethiopian blocks.
This farmout transaction is subject to approval of the appropriate regulatory authorities from the Government of the Federal Democratic Republic of Ethiopia.