Genel eyes Ethiopia farm-in
UPSTREAM – London-listed Genel Energy has reached an agreement with New Age (African Global Energy) to gain a 40% stake in the Adigala Block, onshore Ethiopia.
Genel did not place a value on the deal but said the consideration to earn a 40% non-operated interest would involve a payment in respect of back costs and a contribution to the cost of a 2D seismic survey which is planned before the end of the year.
Genel said 520 kilometres of existing 2D seismic had been reprocessed last year and augmented by a full tensor gravity survey which provided evidence that all the elements of a working petroleum system exist within the block.
Genel noted that oil seeps and surface outcrops supported the presence of a mature and active Jurassic oil prone system, which it said was thought to be analogous to the producing Jurassic Rift basins of Yemen.
“The Adigala Block farm-in is a natural extension of our exploration strategy, which seeks to acquire material equity positions in hydrocarbon basins with significant potential, as well as complementing our extensive interests onshore Somaliland where drilling is planned for 2014,” Genel’s head of exploration, John Hurst, said.
“We look forward to working with our new partners to high-grade the prospectivity on the block and add further depth and materiality to our exploration inventory.”
The Adigala Block covers 27,000 square kilometres in north-east Ethiopia, bordering Djibouti to the north and Somaliland to the east.
Several large potential structural closures have been identified on existing data on the block and Genel said the upcoming 2D survey this year will be used to help refine those leads into drill ready prospects.
Genel expects to complete the farm-in, which is conditional on government approval, next month.