Africa Oil signs two PSCs offshore Equatorial Guinea

Africa Oil Corp. has signed two production sharing contracts (PSC) with the Republic of Equatorial Guinea for offshore Blocks EG-18 and EG-31.

Both blocks are covered by 3D seismic data. In Block EG-31, Africa Oil has identified several gas-prone prospects in water depths less than 80 m and close to offshore Alba gas field and onshore 3.7-million tonne/year Punta Europa LNG plant.

In Block EG-18, the company has identified a potentially large and highly prospective basin floor fan prospect of Cretaceous age like those within its exploration portfolio in Namibia and South Africa.

Total minimum work commitment for both blocks during initial exploration is a combined $7 million, with no drilling commitment.

Africa Oil will operate each block (80%) with the remaining 20% held by GEPetrol Co., the national oil company of Equatorial Guinea. GEPetrol has the option to acquire an additional 15% participating interest in each block.