The government of Madagascar has approved the farmout by Niko Resources Ltd., Calgary, to OMV AG of a 40% interest in the Grand Prix PSC.
Niko, which retains a 35% working interest, expects to receive proceeds from the transaction from OMV by Oct. 3. Consideration is not disclosed. EnerMad Corp. holds the other 25% interest.
OMV will become operator and drill an exploratory well that is expected to spud in early 2015. The 16,845 sq km block extends from the island’s western coast to more than 1,000 m of water.