OMV farms in to Gabon blocks

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Ophir_logo_j004London-listed Ophir Energy has reached a deal to farm-out a stake in its deep-water blocks off Gabon to Austrian company OMV.

OMV will take a 30% stake in the Manga and Gnondo blocks and a 10% interest in the Mbeli and Ntsina blocks.

In exchange OMV will pay related past costs on the blocks and a promoted share of costs on the Padouck Deep, Affanga Deep and Okala wells, as well as the cost of two additional wells 3D seismic surveys over the blocks.

Ophir added that OMV would need to pay further conditional promotes if the Padouck Deep or Okala wells were successful.

Ophir chief executive Nick Cooper said he was “delighted” to bring OMV in as a partner across its Gabon blocks.

“It brings a well-financed, experienced and motivated partner into our blocks and is in-line with our strategy of mitigating exploration risk ahead of drilling,” he said.

“Our retained interests expose shareholders to significant upside in the event of success, especially the pre-salt play on the Mbeli and Ntsina Blocks with the Padouck Deep well due to commence in February 2014.”

As previously reported by Upstream, Ophir has secured a drillship to carry out its multi-well campaign off Gabon next year.

Following the completion of the farm-outs, which are still subject to government approval, Ophir will continue to hold a 70% operated interest in the Manga and Gnondo blocks and a 40% operated interests in the Mbeli and Ntsina blocks.

 

[Upstream]

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