Hyperdynamics Corporation announced that it carried out a Farm-out Agreement with South Atlantic Petroleum (SAPETRO) through its subsidiary SCS Corporation Ltd. (SCS), Petroleum Africa reported.
According to The agreement; SAPETRO will acquire a 50% participating interest in the Production Sharing Contract (PSC), between the Republic of Guinea and SCS, in exchange for its commitment to pay 50% of the Fatala well cost, plus repayment to SCS of half of the costs that was paid in the previous preparation of the well since the PSC Second Amendment was signed, PR News Wire informed.
“We are very excited about SAPETRO’s commitment to join Hyperdynamics in this high-potential opportunity to unlock the value of Fatala and several additional prospects identified by our geoscientists on the 5,000-square-kilometer PSC block” Hyperdynamics’ President and Chief Executive Officer, Ray Leonard commented on the agreement.
The costs are estimated to be approximate $8m to $10m, based on the timing of the finalization of the Farm-out agreement and upon approval of the Guinea Government.
SAPETRO and the Guinea National Petroleum Office signed a Tripartite Protocol last month marking the deadline for submission of the farm-out documents by April 10 and launching of the Fatala well by May 30.