African Petroleum enters first renewal period on Senegal license

Offshore staff

LONDON – African Petroleum Senegal Ltd. has received confirmation of its first renewal period on license Senegal Offshore Sud Profond (SOSP). Prior to entering into the first renewal period, Petrosen (the national oil company of Senegal) agreed to defer the existing well commitment of the first renewal period of SOSP by 18 months to allow for further technical work by African Petroleum Senegal before drilling.

The initial exploration period on SOSP expired on Nov. 2, with African Petroleum Senegal exceeding all obligations, having acquired 3,600 sq km (1,390 sq mi) of 3D seismic data, purchasing 2,000 sq km (772 sq mi) of 2D seismic data, processing and interpreting both datasets, and investing more than $21 million in the license.

African Petroleum Senegal has now entered the first renewal period, which has been split into two 18-month sub-periods. The first sub-period requires the company to carry out further technical work over SOSP. The second sub-period, should the company elect to enter into it, requires the drilling of an exploration well. In accordance with the terms of the license, the company has relinquished 30% of SOSP upon entering the first renewal period.

SOSP has potential for bothdeepwater submarine fans and shelf edge platform plays, both of which have recently been proven in nearby acreage by the Cairn Energy-operated wells FAN-1 and SNE-1.

12/18/2014