Oando Energy Resources Incorporation, a company focused on oil and gas exploration and production in Nigeria and the Gulf of Guinea, has said that it is pleased to announce the transactions by its 81.5% held subsidiary, Equator Exploration Limited, relating to its blocks in the Exclusive Economic Zone of the Democratic Republic of Sao Tome and Principe.
The company noted that on February 19, 2016, Equator executed a Production Sharing Contract with the National Petroleum Agency of STP for Block 12, taking an 87.5% participating interest with ANP-STP holding the remaining 12.5% as a carried interest.
It also said that Equator has subsequently farmed out a 65% participating interest and transferred operatorship in each of Blocks 5 and 12 to Kosmos Energy Sao Tome and Principe, explaining that the Block 5 farm-out transaction was approved by ANP-STP on February 19, 2016 while the Block 12 farm-out transaction was approved on March 31, 2016.
The company noted that prior to the Block 5 farm-out transaction, Equator held an 85% participating interest in the PSC for Block 5, with ANP-STP holding the remaining 15% as a carried interest.
The PSC, it noted, was signed in April 2012 and a 3D seismic survey of 1480 km2 was acquired in April 2015. It explained that after completion of both farm-outs, the ANP-STP holds 15% interest in Block 5 and a 12.5% interest in Block 12; Equator holds 20% interest in Block 5 and a 22.5% interest in Block 12, while Kosmos holds 65% interest each in the two Blocks.
Oando Energy Resources explained that Block 5 has an area of 2,844km2 in water depths ranging from 2,000m to 2,500m and was ranked highest in the EEZ by Equator with regard to hydrocarbon potential based on water depth, proximity to both the Equatorial Guinea shelf and the ancient Ogouee delta, and the presence of structural development related to basement faulting in the Cretaceous where oil has been found in Equatorial Guinea.
It also said that Block 12 has an area of 7,940km2 in water depths ranging from 2,500m to 3,000m, and is situated within Zone B of the government block classification scheme, adding that this group has been ranked the most attractive by Equator due to its proximity to the North Gabon salt basin and the presence of structural prospects located both on the footwall of the Ascension Fault and similar sub-parallel trends.
Commenting on the transaction, CEO OER, Pade Durotoye, said: “Building on our long term relationship with ANP-STP and the government and people of STP, we are delighted to be partnering with Kosmos, who are renowned for their exploration efficiency, and track record of finding large oil and gas resources at better than average industry success rates. Our intention is to keep growing our business, and this farm-out transaction will bolster the achievement of our organic growth quota. We are committed to creating value by focused exploration and development of key assets regionally. The partnership with Kosmos enables us to focus our resources on high potential opportunities, whilst at the same time maximizing profitable production of our Nigerian assets.”