Nigeria-focussed oil and gas company Eland has entered into an agreement with Amalgamated Oil Company Nigeria Limited (Amocon) for acquiring a 40 per cent equity stake in its OPL 452 license
OPL 452, situated in the eastern Niger Delta, onshore Nigeria, is a sole risk exploration licence with Amocon holding 100 per cent of the equity.
The licence covers a total area of 668 sq km with a mix of firm terrain and estuarine areas at the mouth of the Cross River.
It is situated north of the producing oil fields in OML 114 and OML 123 and characterised as having a reduced exploration risk. No well has been drilled to date by the licence holder due to a lack of financial and technical capability.
The initial work programme will be the acquisition of seismic to be followed by an exploration drilling programme, which would be funded from operating cash flow.
In the event of exploration success, the development could proceed quickly due to the proximity of export infrastructure and management experience of similar developments in the immediate vicinity.
Eland CEO Les Blair said, “We are delighted to have entered into an option agreement with Amocon for the exclusive right to acquire a 40 per cent equity stake in OPL 452.
“OPL 452 has the potential to be a significant asset to the company and we look forward to building a successful relationship with Amocon in the coming years.”
