Africa Oil has announced the signing of a new production sharing agreement covering the 42,500 sq km Rift Basin Area in Ethiopia
The company previously held a joint study agreement for the block, which is located north of the Africa Oil's South Omo Block and includes the extension of the Tertiary-age East Africa Rift Trend.
The new license is on trend with highly prospective blocks in the Tertiary rift valley, including the South Omo Block, and Kenyan Blocks 10BA, 10BB, 13T, and 12A.
During the joint study period, Africa Oil completed an airborne high resolution gravity and magnetic survey over the block. Satellite-imaged natural oil
slicks were also ground truthed, as they indicated the presence of an active petroleum system in parts of the block.
Africa Oil plans to complete a full tensor gravity gradiometry survey and exhaustive environmental and social impact assessment of the block during 2013.
"We are extremely pleased to add to our Ethiopian exploration acreage in the Tertiary rift valley trend," said Africa Oil president and CEO, Keith Hill.
"With the work we have completed on the block during the joint study period and the discoveries drilled on trend in the Tertiary rift of Kenya, we believe we have significantly added to our highly prospective exploration portfolio."
