{"id":4417,"date":"2016-03-01T09:40:16","date_gmt":"2016-03-01T09:40:16","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4417"},"modified":"2017-01-25T12:40:03","modified_gmt":"2017-01-25T12:40:03","slug":"exit-from-somalia-ethiopia-blocks-cost-africa-oil-over-100-million-in-201415","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/exit-from-somalia-ethiopia-blocks-cost-africa-oil-over-100-million-in-201415\/","title":{"rendered":"Exit from Somalia, Ethiopia Blocks cost Africa Oil over $100 million in 2014\/15"},"content":{"rendered":"

Africa Oil which earlier said it has elected to not continue exploration activities in the Dharoor and Nugaal exploration blocks in Puntand<\/a>, Somalia and Adigala Block in Ethiopia reveals this resulted to an impairment of $90.6 million and $5.8 million respectively.<\/p>\n

The fourth quarter financial and full year financial and operating results released last week also show that Africa Oil during the fourth quarter of 2015, as a result of exploration results to date and current oil industry environment, the Company wrote off $70.7 million of capitalized intangible exploration assets relating to Ethiopia.<\/p>\n

This decrease was offset by a $1.0 million increase in professional fees relating to entering into the Maersk farmout agreement, a $1.0 million donation to the Lundin Foundation and increased salary costs associated with annual bonuses.<\/p>\n

This said the\u00a0impairment of intangible exploration assets charges were $57.5 million less during 2015.<\/p>\n

In addition to the Puntland and Adigala impairment provisions booked during the fourth quarter of 2014 the Company recorded a $30.8 million impairment of previously capitalized Blocks 7\/8<\/a> (Ethiopia) exploration expenditures during 2014 as the Company elected to withdraw from the Block.<\/p>\n

The Company’s investment in Africa Energy<\/a> it says changed from a position of control to a position of significant influence during the first quarter of 2015, which required the Company’s investment in Africa Energy to be recorded as an equity investment, resulting in the recognition of a $4.2 million gain for accounting purposes. This gain is partially offset by the recognition $1.1 million of losses from Africa Energy during 2015.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa Oil which earlier said it has elected to not continue exploration activities in the Dharoor and Nugaal exploration blocks in Puntand, Somalia and Adigala Block in Ethiopia reveals this … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[55,2944,70,4124,4122,809,1089,1464,3784,4123,2102,2352],"class_list":["post-4417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-adigala-block","tag-africa-energy","tag-africa-oil","tag-block-78","tag-dharoor","tag-ethiopia","tag-horn-petroleum","tag-lundin-foundation","tag-maersk-oil","tag-nugaal","tag-puntland","tag-somalia","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-19f","jetpack-related-posts":[{"id":1598,"url":"https:\/\/www.oilnewskenya.com\/index.php\/horn-petroleum-prepares-for-seismic-acquisition-in-somalia\/","url_meta":{"origin":4417,"position":0},"title":"Horn Petroleum prepares for seismic acquisition in Somalia","author":"Samuel Kamau Mbote","date":"August 12, 2014","format":false,"excerpt":"Horn Petroleum which has working interest in the Dharoor Valley and Nugaal Valley exploration areas in Puntland has announced that it is now focused on making preparations for a seismic acquisition campaign in the Dharoor Valley area which will include a regional seismic reconnaissance grid in the previously unexplored eastern\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2528,"url":"https:\/\/www.oilnewskenya.com\/index.php\/horn-petroleum-halts-exploration-puntland-somalia\/","url_meta":{"origin":4417,"position":1},"title":"Horn Petroleum halts exploration in Puntland, Somalia","author":"","date":"February 13, 2015","format":false,"excerpt":"Horn Petroleum Corporation\u00a0a subsidiary of Africa Oil has said it will significantly reduce its activities in its Dharoor and Nugaal PSC areas pending a resolution of the political situation between the Regional Government of Puntland and the Federal Government of Somalia regarding the legitimacy of oil concession contracts. The company\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3113,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-energy-withdraws-puntland-somalia-blocks\/","url_meta":{"origin":4417,"position":2},"title":"Africa Energy withdraws from Puntland, Somalia blocks","author":"","date":"June 30, 2015","format":false,"excerpt":"Africa Energy formerly Horn Petroleum Corp has announced that it has provided notice to the Puntland State of Somalia advising of its intention to withdraw from the January 2007 productions sharing agreements in respect of the Nugaal Block and the Dharoor Block, each made among the Company, the Government of\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2072,"url":"https:\/\/www.oilnewskenya.com\/index.php\/insecurity-political-issues-continue-to-haunt-exploration-in-puntland-somalia\/","url_meta":{"origin":4417,"position":3},"title":"Insecurity, Political issues continue to haunt exploration in Puntland, Somalia","author":"Samuel Kamau Mbote","date":"November 20, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Insecurity continues to paralyze oil and exploration in Puntland with many companies holding back activities until a solution is sought. Just recently Horn Petroleum which holds licenses Puntland\u2019s Dharoor and Nugaal blocks recently told its shareholders it had halted the planned seismic acquisition in the Dharoor Valley area\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/dharoor-valley-of-puntland-oil-block.jpg?fit=380%2C306&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":209,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africaoil-q3-operations-update-puntland-somalia\/","url_meta":{"origin":4417,"position":4},"title":"AfricaOil Q3 operations update – Puntland, Somalia","author":"Samuel Kamau Mbote","date":"December 9, 2013","format":false,"excerpt":"Dharoor Valley and Nugaal Valley Blocks The Company continues to evaluate the encouraging results of the two wells drilled in 2012 on the Dharoor Valley block which proved all the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks. Based on\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2013\/12\/africaoil.png?fit=280%2C273&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1591,"url":"https:\/\/www.oilnewskenya.com\/index.php\/ethiopias-wells-costs-africa-oil-30-8-million-in-losses\/","url_meta":{"origin":4417,"position":5},"title":"Ethiopia\u2019s wells costs Africa Oil $30.8 million in losses","author":"Samuel Kamau Mbote","date":"August 11, 2014","format":false,"excerpt":"Africa Oil has announced it will be writing off $30.8 million previously capitalized in blocks 7 and 8 on expenditures in Ethiopia. According to the company the El Kuran-3 appraisal well on block 8 which was drilled in the first half of 2014 and which is currently suspended pending further\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=4417"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4417\/revisions"}],"predecessor-version":[{"id":4418,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/4417\/revisions\/4418"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/1382"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=4417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=4417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=4417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}