Genel Energy has announced it has signed a farm-out agreement relating to the SL10B13 block, Somaliland, with OPIC Somaliland Corporation (\u2018OSC\u2019), with all its share of future capital investment coming from CPC Corporation, Taiwan, the state-owned enterprise of Taiwan. Under the agreement, OSC receives a 49% working interest in the block for a cash consideration of 49% of all Genel\u2019s historic back costs, plus a cash premium. Genel previously held a 100% working interest, and will continue as operator.<\/p>\n
Somaliland has significant underexplored potential, with geology analogous to Yemen. The SL10B13 block is highly prospective, with multiple stacked prospects with over 5 billion barrels of prospective resources identified from the interpretation of the 2D seismic data acquisition completed in January 2018.<\/p>\n
The field partners will now work together to plan exploration drilling in this block, with an aim of drilling a well in 2023. It is currently estimated that a well can be drilled for a gross cost of c.$40 million. The prospective SL10B13 area is c.150 kilometres from the port at Berbera, offering a route to
\ninternational markets.<\/p>\n
The agreement has been approved by the Government of Somaliland.<\/p>\n
Mike Adams, Technical Director of Genel, said:
\n“Somaliland is a highly-prospective and largely unexplored region, with a compelling technical case for the drilling of a well. Oil seeps confirm a working petroleum system, and one prospect alone could target over half a billion barrels across multiple stacked reservoirs. Being able to drill this at a low-cost to Genel, with a clear route to market in a success case, fits with our strategy, and we look forward to working with OSC.<\/p>\n
During the energy transition the hydrocarbons that should be developed are those that are low-cost, low-carbon, and deliver a material and tangible benefit to local people and the host government. Somaliland has the potential to tick all of those boxes.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"