Ophir Energy Announces AGC Profond block Farm-out...

Ophir Energy Announces AGC Profond block Farm-out Agreement

Wednesday, June 08, 2011



Ophir Energy plc announces that it has entered into an agreement with subsidiaries of Noble Energy, Inc. (Noble) and Rocksource ASA (Rocksource) concerning Ophir's interests in the Production Sharing Contract (PSC) covering the AGC Profond block in the offshore territory jointly administered by Senegal and Guinea Bissau.

Under the terms of the agreement Noble will acquire a 17.5% interest from Ophir and a 12.5% interest from Rocksource. Noble will satisfy various Rocksource obligations pursuant to a previous agreement with Ophir. In addition Noble will make a promoted contribution towards the drilling costs of the Kora-1 deepwater exploration well and forward joint venture expenditure.

After completion of the Kora-1 well, if Noble elects to remain a party to the PSC, it will continue to make a promoted contribution towards Ophir's costs of drilling a second well, in addition to satisfying a portion of Rocksource's obligation to Ophir pursuant to a previous agreement.

Noble will in addition make a further promoted contribution towards the cost of any future appraisal activity and will have the right to be appointed as Technical Operator for any second well, and as full Operator on the submission of application for an appraisal area under the AGC Profond PSC.

The semi-submersible rig 'Maersk Deliverer' has been contracted to drill the Kora Prospect in AGC Profond. The Kora prospect is a salt-cored dip-closed anticline, located outboard of the Dome Flore heavy oil field, in 2,600m of water with multiple prospective reservoir horizons. The rig is due to arrive on location towards the end of June and the Kora-1 exploration well will be operated by Ophir.

The state owned entity, l'Entreprise, holds a 12% interest which is carried through the exploration phase of the project. l'Entreprise has a right to back-in for a further 5% interest following a declaration of commerciality. All the other parties to the PSC will contribute towards this back-in right pro-rata to their participating interest.

Ophir's Managing Director Dr Nick Cooper commented:

'We are delighted to welcome Noble Energy into our AGC joint venture. Their recent track record of deepwater exploration success and experience as the Operator of major deepwater developments will bring valuable additional skills and experience into the project. The transaction also allows Ophir to efficiently manage its balance sheet exposure, while maintaining a material equity position in this exciting exploration project. We look forward to the drilling of the first deepwater well in this prospective basin.'