CLON6 Jun 2017 12:22
Clontarf Energy PLC (LON:CLON) doubled in value as it was awarded the offshore Block 18 (EG-18) in the Equatorial Guinea 2017 bidding round.
David Horgan a director at Clontarf said it was huge coup for the oil independent.
"Until the 2017 Bid Round, Equatorial Guinea was largely perceived as the bailiwick of US majors and Chinese National Oil Corporations.
"For the first time, the 2017 Bid Round sought new ideas and fresh approaches from the diverse community of oil independents, who have delivered so much elsewhere in West Africa".
The block covers more 5,000 sq km of undrilled deep water acreage with several play types and the focus will be on large structural and/or stratigraphic trap targets, Clontarf said.
The company will have a 70% production interest, 65% oil cost recovery, a $150,000 signature bonus, standard commerciality and production bonuses and normal land taxes.
Production royalty is a standard 13%, rising to 16% over 100,000 barrels of oil daily with profits tax at 35%.
The initial work programme is 3 years that includes seismic acquisition and one well with possible extensions.
"Clontarf has long been interested in Equatorial Guinea's deep-water potential, which is among some of the most prospective in West Africa," Horgan added.
"EG-18 is part of the Northern Rio Muni Basin, which Clontarf has analysed. Our initial interest is in diverse Cretaceous sands plays, particularly a distal fan and turbidite channels visible on historic seismic."