(Ecofin Agency) - African Petroleum has signed a Letter of Intent (LOI) with an anonymous international exploration and production company regarding the farm-out of interests in licences A1 and A4, offshore Gambia.

The proposal for the acquisition is subject to several conditions including the confirmation of the extension of the exploration periods of both licences by no less than 12 months as the exploration periods for both licences expired on September 1, 2016.

“We are pleased to have formalized our discussions with this potential partner through the signing of a non-binding LOI. While conversion of this LOI into any commercial agreement is subject to a number of conditions, including our ability to obtain an extension to the exploration period of both blocks, we are encouraged by the level of industry interest that we continue to generate in our portfolio. Based on our advanced discussions with the relevant authorities in Gambia, we remain confident that we will be able to achieve a satisfactory outcome that enables us to move forward with exploration activity of these exciting assets,” Jens Pace, African Petroleum’s CEO, told Offshore Energy Today.

African Petroleum has concluded a 3D seismic survey with data covering about 2,500km². The company has discovered numerous analog leads and prospects in the acreage which are similar to that of the recent finds and appraisal wells drilled by Cairn Energy in Senegal.

An updated assessment of prospective oil resources attributable to the Gambian licences conducted by independent petroleum consultant ERC Equipoise, has estimated the net unrisked mean prospective oil resources to stands at 3,079 MMstb.

The company is the operator of licences A1 and A4 with a 100% operated working interest in both blocks.

Anita Fatunji