Ann: Area of Mutual Interest Agreement CNOOC - FAR, page-80

H... I hadn't realised that AP narrowly escaped losing their A1 and A4 licences back in 2014.

The two licences were subsequently reinstated with a commitment that AP "would also drill an exploration well on one of the Gambia Licences and reprocess 3D seismic on Licence Block A4 prior to 1 September 2016." (Exhibit A) Do you happen to know whether either of these commitments been met? I suspect they haven't.

Very interesting that on 31 August 2016 - a day before the commitments were due - AP announces a non-binding LOI with an undisclosed E&P company for the possible acquisition of both blocks, subject to "AP confirming the extension of the exploration periods of both licences by at least 12 months by the Government of The Gambia...". [Exhibit B] It smells like desperate attempt to hold the leases for a second time. Not a good look, surely.

It has been 7 months since their non-binding LOI was announced - could AP be embroiled in a legal stoush with Government of The Gambia over the extension of their licences? Given Senegal's and The Gambia's recent 'meeting of minds', it's quite possible that a decision against the extensions could see AMI boundary extend to include both A1 and A4.

Now wouldn't that be nice...

gh.

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[Exhibit A]

African Petroleum reinstates Gambia Licences
Monday, 01 December 2014 09:08


African Petroleum holds a 100 per cent interest in the Gambia Licences through its wholly owned subsidiaries African Petroleum Gambia Limited and APCL Gambia B.V. (Image source: African Petroleum)Oil and gas exploration firm African Petroleum has entered into an agreement with Gambia to reinstate the company’s offshore licences to carry on exploration activities

African Petroleum said that the reinstatement of the Alhamdulilah Licence Block A1 and Licence Block A4 — together the Gambia Licences — is a significant and positive step for the company, particularly following the recent oil discoveries made by Cairn Energy in Senegal.

Stuart Lake, CEO of African Petroleum, said, “We are delighted that the government of Gambia has reinstated Alhamdulilah Licence Block A1 and Licence Block A4. The company looks forward to continuing its exploration efforts on this highly prospective acreage, particularly in light of the recent oil discoveries made by Cairn Energy in Senegal.

“The two oil discoveries made by Cairn Energy at FAN-1 and SNE-1 are reported to have proved excellent quality reservoirs. The SNE-1 well analysis shows a net oil pay of 36 metres and preliminary estimates suggest that the SNE-1 discovery is likely to be a commercial discovery.”

The oil and gas exploration company added that it would also drill an exploration well on one of the Gambia Licences and reprocess 3D seismic on Licence Block A4 prior to 1 September 2016.

[Exhibit B]