Genel Energy has announced that it is to farm in 50 per cent of Jacka Resources Limiteds license interests to explore for and produce oil and gas in the Odewayne Block in the autonomous Somaliland region
Genel Energy will also assume operatorship.
Jacka will retain a 30 per cent interest and the remaining 20 per cent interest is held by Petrosoma.
Genel will make an initial payment of US$670,000 to Jacka in recognition of past costs plus a 100 per cent carry of Jacka and Petrosoma for the exploration work programme required under phases III and IV of the production sharing agreement.
This programme includes a minimum of 1,500 km 2D seismic and the drilling of one exploration well. These will be funded from the company's existing cash resources.
The Odewayne Block covers block SL6 and part of blocks SL7 and SL10, onshore Somaliland. It comprises an area of 22,000 sq km enclosing a Jurassic/Cretaceous rift basin.
An active petroleum system has been demonstrated by numerous oil seeps on the block confirming that the area is underpinned by a working hydrocarbon system, which is believed to be analogous to the nearby producing basins in Yemen.
An airborne gravity and magnetic survey will be used to design an extensive 2D seismic acquisition program to be initiated in Q1 2013.
The transaction is conditional on approval by the Government of Somaliland.
"We are delighted to have farmed in to the Odewayne Block, substantially increasing our acreage position in Somaliland,” said Dr. John Hurst, Chief Operating Officer of Africa for Genel.
“This block, together with our SL10/13B acreage, means we have built a strong position in an exciting frontier exploration area.
“Such frontier exploration opportunities, with a very realistic possibility of finding large volumes of hydrocarbons, are increasingly rare.
“We look forward to commencing our exploration programme which will lead to the spudding of our first well by mid-2014."
