African Petroleum has announced that, further to the company’s announcement dated 23 December 2014 regarding the signing of a non-binding term sheet with a private London based independent oil and gas company to farm-in to the Company’s 100% owned Liberian LB-08 licence, the company announces that it has agreed to extend the date by which completion of the farm-in transaction must be satisfied or waived by 20 March 2015. This extension has been agreed in order to allow both parties the additional time to finalise and agree the transaction documentation.
As previously disclosed, pursuant to the Term Sheet the third party has agreed, subject inter alia to completion of due diligence and the entering into of mutually agreed contracts, to acquire a 50% net participating interest in the LB-08 licence in return for the payment of 50% of all future costs and expenditures relating to the LB-08 licence and a contribution to past costs and expenditures.
LB-08 licence, offshore Liberia
The LB-08 licence is situated in a highly prospective region offshore Liberia. In an independent review of African Petroleum Corporation’s acreage conducted by ERC Equipoise in April 2014 and updated in January 2015, the estimated net unrisked mean prospective oil resources of LB-08 exceeds 2.6 billion barrels. With an oil discovery in the adjacent licence and proof of a working hydrocarbon system in the central Liberian basin, the company believes that LB-08 has substantial potential.
Completion of the farm-in transaction as contemplated by the Term Sheet is subject to contract and a number of conditions precedent, which, apart from one pertaining to approval from the Liberian government, must be satisfied or waived no later than midday 20 March 2015.
Adapted from press release by Cecilia Rehn