By OGJ editors
HOUSTON, Nov. 13 -- Afren PLC has agreed to acquire Devon Energy Corp.'s interests in two exploration blocks in Ghana and Angola. Afren will acquire a 95% working interest in and operatorship of the Keta Block off eastern Ghana and a 15% working interest in Angola's Block 16.
The acquisition, which is subject to certain conditions, preferential rights, and governmental approvals, is in line with Devon's strategy to sell off its West African assets, the company said.
The Keta Block lies in the Volta River basin and covers 5,500 sq km. Devon, which had carried out extensive technical work in the area, identified primary targets as Upper Cretaceous deepwater sandstone reservoirs that have not yet been drilled. The play type is similar to the Mahogany and Hyedua discoveries to the west.
Further evaluation of reprocessed seismic data is ongoing, and the expected mean potential reserves are about 250-500 MMboe.
The current license on the block expires at the end of 2008 and includes one commitment well. The license can be extended for an additional 6 years, which is divided into three 2-year periods, each with a firm well commitment.
Ghana National Petroleum Corp. has a 5% carried interest in the block.
Block 16 off Angola lies within the Lower Congo basin and covers an area of 4,936 sq km. AP Maersk Co. Ltd. holds a 50% interest and operates the block. Other partners include Brazilian firm Odebrecht SA (15%) and Angola's Sonangol EP (20%).
This exploratory block has nine wells and two discoveries of Miocene and Oligocene age. The discoveries, prospects, leads, and play types mapped in Block 16 are analogous to adjacent fields in Blocks 15, 17, 31, and 32. The plays are considered to be highly prospective with several leads and prospects identified. The expected mean potential reserves are about 1,000 MMboe. The discoveries on Block 16 are under appraisal with the potential for early development.
