TGS-NOPEC Geophysical Co. has farmed-out of its Rhône Maritime Exploration permit to Melrose Resources PLC. The permit covers 25,000 sq km in the Gulf of Lion, off the Mediterranean coast of southern France.
TGS-NOPEC Geophysical Co. has farmed-out of its Rhône Maritime Exploration permit to Melrose Resources PLC. The permit covers 25,000 sq km in the Gulf of Lion, off the Mediterranean coast of southern France.
The French Ministére De L'Economic, Des Finance Et De L'Industrie approved the transfer of TGS' beneficial interest to Melrose earlier this month. TGS expects to work closely with Melrose during an ongoing technical evaluation of the permit acreage. Terms of the farm-out agreement include a staged payment schedule and a retained net profits interest in the permit for TGS.
Kjell Trommestad, TGS vice president and general director Europe, commented on the agreement: "The successful transfer of our acreage in Rhône proves the viability of the farm-out method on the exploration frontier. By incorporating different risk models into our data product offerings, we are able to create a greater flexibility of options for companies moving in new and bold directions. We look forward to working with Melrose during the technical evaluation of the permit area."
