Gondwana Oil says positive discussions had with Ghana ministry, confirmation anticipated shortly
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- Created on Tuesday, 22 April 2014 10:28
Gondwana Oil Corp. (CSE:GO) has said that it had “constructive and cooperative” discussions with the Ministry of Energy and Petroleum in Ghana last week, anticipating confirmations from the government body imminently on the acquisition of an interest in the Offshore Cape Three Point South block.
The company is in the midst of an application process for the interest, which would be held by its 70%-owned subsidiary, Miura Petroleum. Last week, Gondwana said that the Ministry made a number of allegations in connection with the application, including on the validity of status and on the negotiations process.
Gondwana, which said it was surprised by the allegations and noted they were inconsistent with documentation received by the company to date, is working in cooperation with the Ministry to resolve the issues. Late Thursday, it said it anticipates confirmations from the Ministry either on its website, or to be released through Gondwana itself after the Easter holiday, following constructive talks.
The Offshore Cape Three Point South block in Ghana sits next to the giant Jubilee Field – the first major discovery in the West African country. The Jubilee Field, which was discovered in 2007, has 2 billion barrels of reserves, and 110,000 barrels per day of current production, with the junior company’s Gondwana block sitting just 25 km southeast of the enormous play.
The asset covers 1,604 square kilometres with past work including a “strong existing 2D and 3D offshore data set”, comprised of 2,378 line km of 3D seismic and 1,687 line km of 2D seismic, ready to be reinterpreted.
Gondwana is currently negotiating the final terms of a production sharing contract (PSC) with the Ghana state oil and gas company (GNPC).
source: reportingoilandgas.org citing Proactiveinvestors.com