The oil and gas Group PA Resources has entered into an agreement to farm-out a total of 72.5 percents interest in the exploration license Marine XIV offshore the Republic of Congo (Brazzaville) to a group of farm-in participants.
PA Resources Congo SA, a subsidiary in the oil and gas Group PA Resources, has entered into a farm-out agreement to sell 29.4 percents working interest in the license Marine XIV to SOCO Exploration and Production Congo (SOCO EPC), 21.55 percents interest to a subsidiary in Lundin Petroleum and 21.55 percents interest to Raffia Oil SARL. SOCO EPC will become the operator of the block. PA Resources will retain a 12.5 percent interest in the license and the national oil company, Societe Nationale des Petroles du Congo, will retain its 15 percent.
In return, the farm-in participants will pay their respective shares of PA Resources past costs, one hundred percent of the costs for a 3D seismic programme to be acquired during the first exploration period and one hundred percent of the costs for the first well to be drilled on the Marine XIV, subject to a maximum cost, in total, of US$ 30,000,000. Additional costs will be paid should the farm-in participants participate beyon d the first drilling period. All other costs will be borne by the participants according to their paying interests.
- This farm-out provides an excellent opportunity for PA Resources to speed up the exploration activities in the license to a minimized cost for the Group. We have now entered into a partnership with a group of dedicated companies which have interests in the neighbouring license Marine XI. This is of huge advantage for the operations, says Ulrik Jansson, President and CEO of PA Resources AB.
The license block Marine XIV is located in the Lower Congo Basin offshore the Republic of Congo. The block comprises three discontinuous sections located in water depths ranging up to 110 metres and covers approximately 265 square kilometres. There has been previous exploration activity on the block resulting in some oil discoveries.
The assignment of interests is subject to approval of the appropriate regulatory authorities of the Government of the Republic of Congo (Brazzaville).
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