Afren to acquire stake in Angola's Cabinda license

Afren PLC of London executed a heads of agreement with Gulf Energy Resources to acquire a 5% stake in Angola's Cabinda Central License Block B.

Nov. 27, 2006

By OGJ editors
HOUSTON, Nov. 27 -- Afren PLC of London executed a heads of agreement with Gulf Energy Resources to acquire a 5% stake in Angola's Cabinda Central License Block B.

The transaction is expected to close in next year's first quarter, subject to certain conditions including negotiation of a final agreement.

The exploration license covers 1,125 sq km. Devon Energy Corp., Oklahoma City, is the operator and owns 30% interest. Other partners are Repsol YPF SA, Angola's state-owned Sonangol, and Petrogal.

Several prospects already have been identified and mapped on this license, Afren said, adding that 32 wells previously were drilled, several of which found light oil.