PETRONAS to farm-in to Gambian blocks A2 and A5
HOUSTON–(BUSINESS WIRE)–Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE American:ERN) (JSE:ERN) today refers to the news release of its joint venture partner, FAR Limited (FAR), dated February 26, 2018 reporting that a subsidiary of Petroliam Nasional Berhad (PETRONAS) has signed a Farm-out Agreement (FOA) with FAR.
The FOA, expected to be completed March 31, 2018, assigns a 40% interest in the A2 and A5 offshore blocks in The Gambia to PETRONAS with FAR retaining operatorship and a 40% interest in each block. Erin Energy has a 20% interest in blocks A2 and A5 following its farm-out to FAR in 2017.
As part of the FOA, PETRONAS will fund 80% of the joint venture’s Samo-1 well up to a US$45 million cap. The well is expected to be drilled in late-2018 and will be the first exploration well offshore The Gambia since 1979. FAR has previously announced that it estimates the Samo Prospect to contain prospective resources of 825 million barrels oil (best estimate, 100% basis, unrisked).(1)
For more information on the FOA, please see FAR’s news announcement at: http://far.live.irmau.com/irm/PDF/2364_0/PETRONASjoinsFARtodrilloffshoreTheGambia
For more information on PETRONAS, please visit www.petronas.com.my
About Erin Energy
Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 5 licenses across 3 countries covering an area of 6,100 square kilometers (~1.5 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana and The Gambia. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN.