UK oil & gas firm buys into license off Equatorial Guinea in ‘potentially transformational deal’

UK-headquartered Europa Oil & & Gas has actually participated in a license offshore Equatorial Guinea with the acquisition of an equity interest in Antler Global.

Europa Oil & & Gas has actually gotten a 42.9% equity interest in Antler Global which holds an 80% working interest in the just recently gotten and extremely potential EG-08 production sharing agreement (PSC) overseas Equatorial Guinea, with the nationwide oil business Guinea Ecuatorialde Petroleos (GEPetrol) holding the staying 20%.

The UK-headquartered oil and gas gamer stated that this membership includes an extra geographical place to its existing portfolio of properties and one which the board thinks has huge near-term, infrastructure-led, near-field expedition capacity.

“We are really delighted about this possibly transformational offer for Europa, which includes another high effect expedition possibility to our portfolio and ties with our tactical technique to renewing the portfolio with possibly high effect however reasonably low danger potential customers,” stated Will HollandChief Executive Officer of Europa Oil & & Gas.

“Equatorial Guinea is a huge chance for us and offers us with near-term drilling activity targeting over 1 TCFE of recoverable resource in a location with a strong upstream market and an extremely encouraging federal government. I am likewise pleased to report that we have strong assistance from a lot of our institutional financiers for this acquisition.”

The membership cash gotten by Antler will money the first-year work program expenses, consisting of the acquisition of existing 3D seismic information, which will be recycled along with preparations to drill, whilst guaranteeing all monetary responsibilities under the EG-08 PSC with the Republic of Equatorial Guinea and GEPetrol are satisfied.

The EG-08 license has a very first expedition duration of 4 years with a drill or drop due date after 2 years.

While the preliminary two-year regard to the license does not need the drilling of a well, the business thinks it currently has drill-ready potential customers, which include 3 independent targets, with approximated overall potential resources of 1.4 trillion cubic feet of gas equivalent (TCFE).

Antler will start a farm-down procedure with a view to generating a partner for drilling. The resource prospectivity of EG-08 has actually just been analyzed at one stratigraphic horizon, which is comparable to discoveries made in the adjacent block run by Chevron. More prospectivity exists in several horizons and these are yet to be examined, Europa Oil & & Gas reported.

Under the regards to the membership, Europa Oil & & Gas will pay Antler an aggregate factor to consider of $3 million, payable in 4 installations, with the very first being quickly following participating in the membership arrangement and the last in October 2024.

In addition, the 2 business and their founding investors have actually participated in an investor arrangement with traditional defenses and constraints, consisting of that each of Europa and Antler’s founding investors will can select one director to the board of Antler, all choices made by the board of Antler should be consentaneous, and a contract that all oil and gas properties in Equatorial Guinea are covered by location of shared interest (AMI) arrangements.