WHL Energy has announced that in line with the provisions under the farm-out agreement dated March 4, 2014, Ophir Energy has chosen to implement its exit option.

WHL Energy signed a farm-in agreement with Ophir Energy on March 4, 2014. Under the agreement, Ophir will farm-in to get a 75% in the company’s exploration interest offshore Seychelles, and finance about $17 million of the achievement of a 1,500km² of an initial 3D seismic.

The agreement also made provision for Ophir to withdraw from the farm-in or exercise the option to finance the acquisition of an additional 1,000km² of 3D seismic, up to about $12 million as well as finance 90% of the expenses of the first exploration well, up to about $30 million.

Meanwhile, on April 14, 2014, the Government of Seychelles, PetroSeychelles, Petroquest International and Ophir signed the formal documentation approving the farm-in agreement and an amended Petroleum Agreement. The amended Petroleum Agreement included slight differences to the work commitments, an extension of the term of the exploration period to 31 July 2016, a decrease in the size of the Seychelles permitted area to 12,856 km² and the transfer of operatorship of the project areas to a subsidiary of Ophir.

However, in line with the terms of the Petroleum Agreement, Ophir has chosen to implement the exit option.PetroSeychelles formally informed Petroquest International that the Petroleum Agreement which was signed on April 14, 2014, involving Blocks 5B/1, 5B/2 and 5B/3 has been terminated.According to Energy-pedia, WHL Energy is at present in talks with the Seychelles Government to carry on with its involvement in the Blocks and will give an update on the result of the discussions.

Anita Fatunji