Australia’s WHL Energy Limited announced Tuesday that it signed a farm-in agreement with Ophir Energy under which Ophir will farm-in for a 75 percent interest in WHL Energy’s exploration interests offshore the Seychelles.
Ophir will fully fund the acquisition of 579 square miles of 3D seismic, up to a total amount of $17 million.
Following the acquisition and evaluation of the initial seismic, Ophir has the option to both fully fund the acquisition of a further 386 square miles of 3D seismic and fund 90 percent of the costs of the first exploration well.
WHL Energy Managing Director, David Rowbottam, said “the Company is delighted to have secured a farm-in partner of Ophir Energy’s standing. Having a company with the record of Ophir Energy partner together with WHL Energy to take the ‘flagship’ Seychelles project forward is a tremendous milestone for the Company.”
The deal still needs formal regulatory approval by the Government of the Seychelles.