Soma Oil Delivers Seismic Data to Somalia Government, Applies for PSA

UK-registered oil and gas exploration company focused on Somalia Soma Oil & Gas has said that as per the terms of the Seismic Option Agreement (SOA), the company has delivered the Exploration Programme data to the Ministry of Petroleum and Mineral Resources of the Federal Government of Somalia.

Having completed its obligations under the SOA Soma has submitted a Notice of Application for Production Sharing Agreements (PSAs) as per the SOA.

The presentation was in parallel with the opening of the new office of the Ministry which will feature a Data Room with the capability to store & display the Exploration Programme data.

Already the Ministry has appointed Spectrum ASA to market this Exploration Programme data. Spectrum is currently acquiring approximately 28,000 km of long offset 2D seismic data offshore south Somalia.

According to Soma Oil it’s analysis of the acquired and processed 2D seismic data has identified specific prospects which merit further exploration and hence the submission of Notice of Application to the Ministry for PSAs targeting these prospects.

“Our submission of Notice of Application for PSAs highlights our continued interest and willingness to take investment risks to explore for hydrocarbons offshore Somalia.  The Board and I wish to thank our shareholders for their continued funding and support as we embark on the next phase in exploration,” Lord Howard of Lympne, Chairman of Soma Oil & Gas.

The conversion of this Notice of Application into PSA awards is dependent on the finalising of a Model PSA by the Ministry, the negotiation of specific PSAs between the Ministry and Soma, a revenue sharing agreement between Federal Member States and the Federal Government of Somalia and final approval of PSA awards by the full Federal Government.

Meanwhile the company has announced that Richard Anderson has taken over as the new CEO after Robert Sheppard decided to stand down.He will remain on the Board of Directors.

Anderson has been a non-executive director on the Board of Soma Oil & Gas since December 2013 and has 32 years’ experience in oil and gas industry, including executive finance and management roles.

Anderson was the CFO of Eurasia Drilling Company from 2008 to March 2015 and he was also on the Board of Eurasia Drilling Company up to October 2015. He was President and Chief Executive Officer of Prime Natural Resources, Inc. from 2002 until 2007.

Mr Anderson is Chairman of Vanguard Natural Resources LLC (NASDAQ).

The company and its management is currently under investigations by the United Kindgom’s Serious Fraud Office in relation to allegations of corruption in the horn of Africa country.