SOCO International PLC will take a farmout from a unit of PA Resources AB, Stockholm, to earn a 60% working interest in the Mer Profonde Sud permit offshore Congo (Brazzaville).
The permit comprises the exploration area of the license but excludes Azurite oil field.
In return for carrying certain of PA Resources Congo SA’s costs, SOCO will assume a 60% working interest in the exploration area as operator and will drill an exploratory well during the remaining license period.
The well will test a different structural setting and play, identified from recent seismic reprocessing and subsurface reevaluation, from the other wells drilled on the block and targets similar reservoirs that produce in offsetting fields in Congo and Angola-Cabinda.
The transaction is subject to partner and regulatory approvals including both the assignment of the interest to SOCO and renewal into the third and final period of the license. Following approval, the partners would look to drill the well in 2014-15, SOCO said.
Following completion of the farmout, PA Resources Congo will retain a 25% working interest in the license and state SNPC will retain a 15% interest.