CAMAC Energy Signs Petroleum Agreement for the Expanded Shallow Water Tano Block in Ghana
CAMAC Energy Inc. (“CAMAC Energy”) (NYSE MKT: CAK) has signed a Petroleum Agreement with the Government of Ghana covering the Expanded Shallow Water Tano (ESWT) block located in the Tano Basin offshore Ghana, about 15-35 km off the coast of Ghana.
The ESWT block size is 1,508 square kilometers (370,000 acres) in water depths ranging from 55 meters to 116 meters (180 feet to 380 feet) and contains three discovered fields: Tano North, Tano West and Tano South. Significant quantities of oil and gas have been discovered in these fields, and drill stem tests carried out also established producibility of the reservoirs. The agreement requires that the partners evaluate the feasibility of economic development of the discovered fields over the next 9 months.
The ESWT block is bounded on the north by the Ghana Coastline, on the west by the Maritime Border with Cote D’Ivoire, on the south by the Deepwater Tano Block, which hosts the Tweneboa/Enyenra/Ntomme (TEN) fields, and on the east by the West Cape Three Points Block, which hosts the Teak-Akasa discoveries as well as the largest offshore oil discovery in West Africa over the last decade, the Jubilee field. Companies currently active in the Tano Basin include Tullow Oil plc (LSE: TLW), Kosmos Energy Ltd. (NYSE: KOS), Anadarko Petroleum Corporation (NYSE: APC), and Hess Corporation (NYSE: HES), among others.
CAMAC Energy Ghana Limited, an indirect 50%-owned subsidiary of the company, is the operator of the ESWT block with a 60% participating interest. GNPC Exploration Company Limited holds a 25% participating interest and Base Energy Ghana, Ltd., an indigenous Ghanaian company, holds a 15% participating interest. Ghana National Petroleum Company (“GNPC”) will initially have a 10% carried interest and have the right to acquire an additional paying interest of up to 10% following a declaration of commerciality.
“The Tano Basin offers the kind of high-reward oil prospects that we believe will enable us to build near-term value for our shareholders through the drillbit,” said Kase L. Lawal, CAMAC Energy Chairman and Chief Executive Officer.
“The signing of this Petroleum Agreement is another major step in building a robust asset portfolio. We intend to pursue various development scenarios to economically develop the discovered fields on a fast track basis. We are pleased to be partnering with the Ghana National Petroleum Corporation and Base Energy to pursue this opportunity, and we look forward to building a long-term relationship with the Ghanaian government as we work towards developing this asset,” Lawal added.