African Petroleum Corp. announced that it has entered into an agreement with Buried Hill Africa Ltd. to farm-out a 10% interest in Block CI-509 offshore Côte d’Ivoire in return for Buried Hill funding 21.1% of the cost of the next exploration well to be drilled on Block CI-509 and an additional cash payment to African Petroleum Corp. representing 10% of past costs incurred.
Under the terms of the farm-out agreement, African Petroleum Corp. will continue as operator on the license.
Completion of the farm-out agreement is subject to the satisfaction or waiving of certain conditions precedent, which, apart from one pertaining to government approval of the transfer, must be satisfied or waived no later than 1 November, unless extended in accordance with the farm-out agreement.
African Petroleum Corp. operates eight licenses located in fast-emerging hydrocarbon basins offshore West Africa. The company is actively seeking partners to share risk and reward across all assets. In line with this clearly communicated strategy, dialogue will continue with other potentially interested parties with a view of securing an additional farm-in partner for Block CI-509.
African Petroleum Corp. Chief Executive Officer, Dr. Stuart Lake commented: "We are very pleased to have secured an initial farm-in on Block CI-509. Alongside the adjacent Block CI-513, Block CI-509 forms part of our highly prospective acreage position offshore Côte d’Ivoire, and we look forward to announcing further farm-in deals on our West African offshore acreage in due course."
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