The directors of Clontarf Energy (AIM: CLON) are pleased to announce that Clontarf Energy has been awarded Block 18 (EG-18) in the Equatorial Guinea 2017 Bid Round.
Block 18 covers approximately 5,056 km2 of undrilled deep water acreage with several play types. Clontarf Energy's focus will be on working on large structural and / or stratigraphic trap targets.
The bid terms include Clontarf Energy with 70% of production interest, 65% oil cost recovery, a $150,000 signature bonus, standard commerciality and production bonuses, normal land taxes.
The production royalty is a standard 13%, rising to 16% on production over 100,000 barrels of oil daily.
The contractor interest starts at 80% through the first 40 million barrels of oil production, and falls according to a standard formula until output reaches 200 million barrels.
The initial work programme is 3 years (extendible) to include seismic acquisition plus one well if drillable targets are identified. The second sub-period is 2 years, with two allowable extensions of one year each accompanied by a work programme.
Profits tax is 35%.
Director David Horgan commented:
"Clontarf has long been interested in Equatorial Guinea's deep-water potential, which is among some of the most prospective in West Africa. 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."
"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 fine detail is expected to be finalised in early meetings scheduled with the Equatorial Guinea authorities."