Farm-out of interest in AGC Profond PSC to Woodside Energy
London, 18 February 2016, Impact Oil and Gas (“Impact”), the African-focused pure exploration company, is pleased to announce that it has reached an agreement with Woodside Energy (Senegal) Pty Ltd (“Woodside Energy”) a subsidiary of Woodside, for the farm-out of a 65% participating interest in a Production Sharing Contract (“PSC”) and associated joint operating agreement in the AGC Profond block located in the joint development area between Senegal and Guinea-Bissau (“the Zone”).
The offshore AGC Profond PSC covers approximately 6,700km2, in water depths ranging from 1,400m to 3,700m, and is located west of the Dome Flore and Dome Gea oil accumulations, and to the south of the recent Fan-1 and SNE-1 and 2 oil discoveries of Cairn / ConocoPhillips / FAR.
Impact was awarded the licence in October 2014, and its technical evaluation of the AGC Profond PSC commenced with the purchase of legacy 2D and 3D seismic data in November 2014, comprising of approximately 3,990km2 3D and 4,933 line km of 2D seismic.
Prospectivity has been identified at various stratigraphic levels, from the Cretaceous deep- water clastics in the west of the licence, to the Jurassic and Cretaceous platform margin plays in the east, similar to the recent discoveries by Cairn.
The completion of the farm-out is subject to conditions precedent including regulatory approvals.
The participating interests in the AGC Profond PSC on completion of the farm-out will be as follows: Woodside Energy, Operator (65%); Entreprise AGC SA (an entity owned by Senegal and Guinea-Bissau pursuant to the documents governing the Zone) (15%) and Impact (20%).
Mike Doherty, Executive Chairman of Impact Oil & Gas said:
“We are delighted to have a company of Woodside’s calibre joining us as a partner in AGC. We believe that this block has substantial potential as it sits along the fairway that has been proven by the recent success of the Cairn and Kosmos drilling to the north. Impact continues to deliver on its strategy of building an attractive group of exploration assets and securing large independent and major oil companies as partners. The fact that a major company is joining us at this challenging time in our industry demonstrates that majors continue to see value in high-potential acreage offshore Africa. This follows on from our announcement late last year that Statoil has farmed into our Tugela Block, offshore Durban, South Africa where we already have a partnership with ExxonMobil.”
A full copy of Woodside’s press release is copied below.
Impact Oil and Gas +44 1483 750 588 Mike Doherty (Executive Chairman)
Robert Wilde (Finance Director)
Phil Birch (Exploration Director)
Camarco +44 20 3757 4980 Billy Clegg / Georgia Mann
About Impact Oil & Gas
Impact Oil and Gas was founded in 2009 by experienced geoscientists who targeted a number of areas offshore South Africa which had very large hydrocarbon potential. Following licence awards and a successful 2D seismic acquisition campaign, a series of play concepts were identified and the company entered into a partnership with ExxonMobil. Together the two companies are currently working on a substantial exploration programme offshore South Africa.
With a clear strategic focus as an Africa only, pure exploration company, management is committed to building an attractive group of exploration assets and securing large independent and major oil companies as partners. The company’s objective is to build a world class portfolio, in a number of different geological and political locations on the African continental margins. Management believes that by doing so, and by having oil industry partners validate its exploration concepts and ideas, it can deliver substantial shareholder value in the medium to longer term. The company’s current portfolio covers over 95,000km2 gross, across South Africa, Namibia, Gabon and AGC (Senegal/Guinea-Bissau).
Woodside’s press release:
WOODSIDE ACQUIRES EXPLORATION ACREAGE
IN THE SENEGAL AND GUINEA-BISSAU JOINT DEVELOPMENT ZONE
Woodside advises that its subsidiary Woodside Energy (Senegal) Pty Ltd has entered into an agreement with Impact Oil & Gas AGC Ltd (Impact) to acquire a 65% participating interest in a Production Sharing Contract (PSC) and associated joint operating agreement in the AGC Profond block located in the joint development area between Senegal and Guinea-Bissau (the Zone).
The AGC Profond PSC covers approximately 6,700 km2 and its water depths range from 1,400m to 3,700m.
Impact will retain a 20% participating interest and Entreprise AGC SA (an entity owned by Senegal and Guinea-Bissau pursuant to the documents governing the Zone) has a 15% participating interest in the PSC. Woodside will be the operator of the PSC.
Woodside CEO Peter Coleman said the PSC represented an opportunity for Woodside to secure high quality acreage in a focus area of interest.
“This builds on recent acquisitions in Cameroon, Gabon and Morocco and reflects our disciplined and strategic approach to studying regional petroleum systems,” Mr Coleman said.
The completion of the farm-in, and Woodside’s acquisition of the interest, is subject to conditions precedent including regulatory approvals.