genel moves into offshore morocco

The area is heating up much like East Africa 6-12months ago


http://www.proactiveinvestors.com/companies/news/33739/genel-energy-seals-morocco-farm-in-with-serica-san-leon-and-longreach-oil-gas-33739.html

Genel Energy seals Morocco farm-in with Serica, San Leon and Longreach Oil & Gas
Thu 2:51 am by Jamie Ashcroft
Genel will cover drilling costs of up to US$50 million at Sidi Moussa Genel will cover drilling costs of up to US$50 million at Sidi Moussa

Anglo-Turkish oil firm Genel Energy(LON:GENL) has struck a deal to acquire a 60 per cent interest in the Sidi Moussa offshore block, in Morocco.

The deal, with a group of three junior explorers, is one of three agreed this week by Genel - it has also sealed a major gas acquisition in Iraqi Kurdistan, and made a move into Malta.

And it also follows Genel’s last month’s entry into Morocco. In today’s Moroccan deal Genel is paying US$1.3 upfront in respect of past costs, and importantly it is committing to cover future drilling costs of up to US$50 million.

"We are delighted to have reached this agreement to farm in to the Sidi Moussa Offshore Block, which together with other acquisition activity, is establishing a material position for Genel Energy in Morocco,” said Dr John Hurst, Genel chief operating officer.

“It is consistent with our strategy of building a portfolio of high impact exploration assets within the Middle East and Africa."

Going forward, Genel will be the majority partner in the Sidi Moussa venture, with its junior partners Serica Energy(LON:SQZ) owning 5 per cent, San Leon (LON:SLE) with 8.5 per cent and Longreach Oil & Gas (CVE:LOI) owning 1.5 per cent.

The Moroccan authorities, via the Office National des Hydrocarbures et des Mines (ONHYM), retain a 25 per cent carried interest in the venture.

Extensive geological and geophysical work has been carried out by the Sidi Moussa partners in the past two and a half years.

“The work undertaken on the Permits has shown considerable opportunities and bringing in a company such as Genel will enable the partners to conduct near term exploration drilling on this licence," said Longreach chief Bryan Benitz.