Aussie firm looks to explore off Liberia

By OGJ editors
HOUSTON, Feb. 9 -- Global Iron Ltd., Perth, is set to acquire a Cayman Islands company that holds 100% interest in two blocks in the Gulf of Guinea off central Liberia.

Global Iron will acquire African Petroleum Corp. Ltd., which holds blocks 8 and 9 where a 3D seismic survey to cover more than 5,000 sq km is under way.

Global Iron’s acquisition of APCL is valued at $500 million (Aus.) and is contingent on Global completing a share placement to raise $130-230 million (Aus.).

APCL won rights to blocks 8 and 9, which total 7,200 sq km in 200-3,500 m of water, from National Oil Co. of Liberia in a 2004 bid round. APCL is pursuing rights to offshore license blocks elsewhere in West Africa and has applied for blocks in Sierra Leone and Liberia.

APCL’s executive team has agreed to take key management positions in Global, including overseeing exploration and development of blocks 8 and 9, Global said. Six of seven wells drilled in 1970-72 and 1984-85 in 100-470 m of water on the shelf and upper slope had oil shows, indicating a working petroleum system.