Australian Energy Company WHL Energy a joint venture partner in Blocks 5B/1, 5B/2 and 5B/3 in Seychelles has announced that its farm-in partner and operator Ophir Energy has elected to exercise its exit option under the Deed of Novation, Amendment and Restatement Agreement dated 14 April 2014.
The agreement between the Government of the Republic of Seychelles, PetroSeychelles, Petroquest International and Ophir relating to Blocks 5B/1, 5B/2 and 5B/3 all blocks revert back to the Seychelles Government.
“Ophir in accordance with the terms of the Petroleum Agreement, has elected to exercise its exit option thereunder,” WHL said in a statement.
Ophir Energy acquired its Seychelles assets following a farm-out agreement with WHL Energy that saw the British explorer acquire: 75 % interest in WHL Energy’s Seychelles Project, provide funding for an initial 1,500km2 3D seismic acquisition and processing programme and an option to fund a further 1,000km2 of 3D seismic and 90% of a first exploration well following data evaluation.
WHL Energy also received $4 million of past costs with the potential to receive US$2 million following take up of the drilling option.
WHL Energy says it is currently in discussions with the Seychelles Government to continue its participation in the Blocks and will update the market in due course of the outcome of these discussions.