30 Sept 2013farm in farm out agreement▲ GoodMajor
The company completed a farm-out of Block 11B/12B offshore South Africa to Total E&P South Africa BV, which gets a 50% working interest and becomes operator. In return the company received an undisclosed upfront cash payment, recovery of 50% of past costs, and a carry on the first exploration well up to US$150 million gross cost; that well is targeted for 2014. More payments are due if exploration succeeds and the block is developed. This is a new partnership for the company's offshore Africa portfolio.