Canadian oil company, Africa Oil, has reported that its farmout agreement with New Age (African Global Energy) has ended
New Age has paid Africa Oil US$1.5mn and acquired an additional 25 per cent interest in Blocks 7 & 8 in Ethiopia, together with the right to carry out operations in Blocks 7 & 8 and in the Adigala area.
Africa Oil president and CEO, Keith Hill, said the company had planned to begin drilling operations in Ethiopia, with construction of the Sabisa-1 to commence before the end of the year in the South Omo Block.
"Tullow Oil plc holds a 50 per cent working interest and operates the South Omo Block with Africa Oil holding the remaining 50 per cent interest," Hill added.
"East Africa is rapidly becoming the most prospective oil and gas province in the world and the large, strategic land portfolio we hold ensures we will be at the centre of industry activity."
Africa Oil expects to reveal results from the Twiga South-1 well drilling project, which is being drilled in Block 13T, in early to mid-November.
