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Oryx nabs vast deepwater acreage offshore Senegal and Guinea Bissau

16th October 2014

Oryx Petroleum has acquired an 85 per cent interest in the AGC Central licence located in the joint development offshore area between Senegal and Guinea Bissau (AGC)

Oryx nabs deepwater acreage offshore Senegal and Guinea Bissau
Terms of the joint operating agreement between partners and the PSC largely emulate the terms for the AGC Shallow licence area

“We are excited about expanding our presence in the AGC. The low cost addition of a new play type, one that others are pursuing in Senegal with some recent success, gives us another way to succeed in the AGC,” said Michael Ebsary, Oryx Petroleum CEO. “We aim to build a substantial business in the region.”

The PSC has been approved by decree from the Haute Autorite, the presidencies of Senegal and Guinea Bissau, who are responsible for administering oil exploration activities in the AGC.

The licence covers 3,150 square kilometres in water depths ranging from 100 metres to 1,500 metres, an area that was previously included in the AGC Profond licence area. Previous operators in the AGC Profond licence area have focused activities on the deepwater portions of the license.

Oryx Petroleum will hold an 85 per cent participating interest and serve as operator with L’Entreprise AGC holding the remaining 15 per cent. Terms of the joint operating agreement between partners and the PSC largely emulate the terms for the AGC Shallow licence area.

Notably, L’Entreprise AGC’s share of costs will be carried through exploration and they will have a back-in right for an additional five per cent paying interest in the license upon declaration of commerciality.

A signature bonus was paid in conjunction with the signing of the PSC. The PSC includes three exploration periods of three, two and two years. Commitment in the initial three year exploration phase is the acquisition of 750 square kilometres of 3D seismic data.

Based on available technical data, Oryx Petroleum has identified a carbonate edge play type with potential Cretaceous clastic/carbonate structures.. The play type is similar to plays being pursued in similar water depths in Senegal by other industry participants. The play type also shares some commonalities in terms of a working petroleum system with play types that Oryx Petroleum has identified in the AGC Shallow licence area.

Oryx Petroleum also holds an 85 per cent participating interest in and serves as Operator of the AGC Shallow licence area, a 1,700 square kilometres license area in water depths up to 100 metres. Based on technical data, Oryx has identified two play types in three structures: sub-salt related structural traps in the Albian and seismic amplitude prospects in the Maastrictian. 3D seismic data has been acquired, processed and analysed and Oryx is finalising drilling plans with the drilling of the first exploration well expected in the first half of 2015.

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