Savannah Petroleum PLC a UK oil and gas giant, via her unit in Niger, Savannah Petroleum Niger, and the government of Niger has signed a PSC (product sharing contract) for the R3/R4 license area. Savannah will pay a $28 million signing bonus to the government.
The asset R3/R4 PSC is located in the area Savannah refers to as the Agadem Rift Basin and is in close proximity to the R1/R2 PSC area. Savannah has currently mapped 29 leads across the R3/R4 PSC area, with a range of mapped closure sizes similar to existing discoveries in the basin.
The minimum work program requires the acquisition of 750-sq km of 3D seismic and the drilling of two wells during the initial period of the exclusive exploration authorization (EEA), 500-sq km 3D seismic and two wells during the first renewal period of the EAA, and 250 sq km 3D seismic and two wells during the second renewal period.
According to Andrew Knott, CEO of the company who said: “The signing of the R3/R4 PSC is another landmark transaction for Savannah. We have now licensed c.50% of the Agadem Rift Basin, which the Board believes places the company in a very strong position for the future given our assessment of the scale, risk profile and cost structure of our assets.
The CEO further added that he would again like to thank the government of Niger for awarding the PSC to us, and for their support over the past three years. Savannah will now move to commence what we expect to be an aggressive exploration program over our licenses which we hope will deliver material benefits for all of our stakeholders over the coming years.”
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