GlencoreXstrata PLC has completed taking a farmout in southern Chad from Caracal Energy Inc., Calgary, formerly Griffiths Energy International Inc.
Glencore will earn a 25% working interest in the Badila and Mangara exclusive exploitation authorizations with Caracal Energy retaining 50%. Under the terms of a separate agreement between Glencore and Soc. des Hydrocarbures du Tchad, Glencore has acquired a further 10% working interest in the EXAs, with SHT retaining 15%.
Glencore, in consideration for acquiring the working interest in Badila and Mangara from Caracal, will fund $300 million of Caracal Energy’s working interest share of joint venture expenditures in Badila and Mangara oil fields up to a maximum of $100 million/year. The agreement is effective July 1, 2012.
Caracal Energy and Glencore are required to fund SHT’s costs, which are reimbursed through cost oil.
Pursuant to the agreement, Glencore acquired a 33.3% working interest in the exclusive exploration authorizations granted under each of Caracal Energy’s three production-sharing contracts in Chad. In consideration for the assignment of the working interest, Glencore paid Caracal Energy $31 million on closing, representing 33.3% of Caracal Energy’s unrecoverable costs related to the three PSCs as of July 1, 2012.
The three PSCs total 26,103 sq km in southern Chad (see map, OGJ, June 4, 2012, p. 44). Combined areal extent of Badila and Mangara fields is 100 sq km. The fields are in the same PSC within 95 km of each other.
Badila covers 29 sq km and is 16 km from an oil pipeline, and Mangara covers 71 sq km 111 km from the same pipeline.