farmout still ongoing with 3 very large orgs

Farm-out progress

Against a background where the Company sees increasing value in its flagship Seychelles project, WHL Energy continues to actively progress partnering in its offshore Seychelles acreage. The Company continues to be in discussions with three separate very large organisations.
WHL Energy is committed to ensuring that the significant value of its large 100% held position on the East Africa conjugate margin is realised for its shareholders, and is confident in its ability to secure partner(s) for its Seychelles acreage.
Commenting on the farm-out process, WHL Energy’s Managing Director, Steve Noske, said: “The Company remains committed to continuing farm-out discussions, but it is not driven to execute a farm-in agreement based on cost imperatives. The Company’s aim remains to deliver enhanced value back to its shareholders and introduce a partner to its Seychelles project that provides further growth opportunities. We will only conclude a farmout agreement if we believe that it will bring the best opportunity for WHL Energy and its shareholders to progress our very valuable Seychelles asset,” Mr Noske said.
Apart from its own work, the Company believes there are a number of activities in the region that will add value to its Seychelles acreage, including:
• The Republic of the Seychelles being expected to hold an open acreage bid round later in 2012. The open acreage release will serve to heighten industry awareness of the Seychelles and focus the industry on the WHL Energy held acreage. Given the detailed level of geological modelling, petroleum system modelling and seismic interpretation completed, WHL Energy is of the view that the industry will continue to increase its estimate of the Company’s value as 2012/13 progresses; and
• Ongoing exploration success and corporate takeover/merger activity for companies exploring in East Africa providing strong support for the value of WHL Energy ’s acreage in the Seychelles.