9th May 2014 09:45
LONDON (Alliance News) - Sacoil Holdings Ltd Friday said it would now push ahead with seeking approval for taking a 20% stake in an oil prospecting license in Nigeria, after a key hurdle delaying the deal that was signed in 2010 fell.
Under the farm-in deal signed in October 2010, SacOil was to acquire a 20% interest in the OPL 281 licence onshore Nigeria from Transnational Corporation of Nigeria PLC, or Transcorp. However, the farm-in needs the approval of the Nigerian government, and that couldn't happen until Transcorp did a production sharing agreement for the license with the Nigerian National Petroleum Corporation.
SacOil said Friday that Transcorp had informed it that the production sharing agreement had now been signed, and SacOil intended to liaise with Trasncorp to seek Nigerian government approval for the transfer of a 20% participating interest to the AIM-listed company.
"Transcorp, as operator of OPL281, will now proceed to execute the PSC commitments and work programme to appraise the contingent resources estimated at approximately 100 million barrels of oil equivalent," SacOil said in a statement.
"The company will now liaise with Transcorp in order to pursue the preparation of the application to seek Government's approval, as well as to attend to the lodging of same with the appropriate authorities in Nigeria," it said.
SacOil shares were down 3.2% at 3 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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