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Morocco: Genel to acquire offshore block interest

Genel Energy PLC will acquire an interest in the Sidi Moussa exploration permits offshore Morocco from a group led by Longreach Oil & Gas Ltd., London.

Genel will acquire a 60% equity interest pro rata from Longreach, Serica Sidi Moussa BV, and San Leon Offshore Morocco BV for a combined $1.3 million. Genel also will pay for drilling the commitment well required under terms of the first extension period, including full costs related to the ONHYM carried interest, up to $50 million.

As a result of the farmout, Longreach will have an ongoing 1.5% interest, Serica 5%, and San Leon 8.5%. The partners have already informed the Moroccan authorities of their intent to proceed into the first extension period.

The group has carried out extensive geological and geophysical analyses of the Sidi Moussa subsurface the past 2-1/2 years. Having identified several prospective exploration targets, a farmout process was initiated to attract a partner with the requisite financial and technical capability to drill in the relatively deep waters.

The contiguous Sidi Moussa and Foum Draa permits cover a combined 3.1 million acres in shallow to about 2,000 m of water west of Agadir. Prospective reservoirs are of Lower Tertiary, Upper and Lower Cretaceous, and Jurassic age at 2,000-4,000 m.

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