Genel Energy acquires stake in two blocks offshore Angola

3rd Apr 2014 12:53

Genel Energy has announced plans to acquire a 15 per cent stake in two blocks offshore Angola in Africa. The purchase, which is being made in partnership with White Rose Energy Ventures (WREV), will give Genel a stake in exploration licences that hold multi-billion barrel prospectivity and represent a relatively low risk, high impact near-term exploration opportunity.The firm explained that the area has already been de-risked by exploration drilling in the area, where there is working hydrocarbon system that has already been established. Chief Executive of Genel, Tony Hayward, said: "This transaction provides a rare opportunity to enter into a low risk, multi-billion barrel resource play. It fits with our stated strategy of securing high quality exploration opportunities targeting very material resources, and further enhances the opportunity to add significant shareholder value through the drill bit in Africa. "Partnering with White Rose offers us a unique opportunity to secure a material interest in the exciting pre-salt play whilst managing our financial exposure to a level appropriate for a company of our size. "White Rose brings significant directly relevant technical experience which together with Statoil, a first-class operator with longstanding regional knowledge and relationships, establishes a strong and exciting partnership with which to establish an entry position in Angola."The interests will be acquired through two separate transactions. In each transaction, a 15% working interest will be acquired by a 50/50 Genel/WREV joint venture company.Genel will pay $30m for block 38 and $111m for block 39. The latter will be paid by carrying the current owner's share of expenses on the block, with the carry on the first exploration well capped at $123m ($61m net to Genel) and the remaining $99m carry ($50m net to Genel) paid in the event that Genel or WREV opts to participate in additional activity on the block. NR