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Dana Farms In To Guinean Block UK based Dana Petroleum and US Independent Hyperdynamics Corp. have signed an exclusive letter of intent (LOT) for Dana to gain an interest in the Texas company’s 80,000 sq km concession offshore the Republic of Guinea.

The LOI positions Dana to potentially acquire a 23% working interest in the large concession which encompasses all of offshore Guinea, an area equivalent to 330 UK blocks.

The LOI contemplates Dana and Hyperdynamics signing definitive binding documents no later than December 31, 2009. During this period, Hyperdynamics is legally committed to deal exclusively with Dana with respect to this 23% interest.

Hyperdynamics intends to bring in to the concession a further significant partner with strong financial and technical capability. Dana has the option to negotiate for an additional interest of up to a further 27% (to give Dana a total of 50% interest) if Hyperdynamics does not sign a letter of intent with another potential partner by November 30, 2009.

Hyperdynamics first officially announced its intent to farm-out a portion of its Guinea acreage in January 2007. Since that time the company has opened up its Houston data room and made presentations in numerous venues including Calgary and Houston, and retained the services of advisors such Zeus Development Corp. to assist in attracting potential farm-in partners.

Hyperdynamics has recently signed a new MoU with the government of Guinea which confirms Hyperdynamics’ title to the Production Sharing Contract (PSC). It requires relinquishment of 64% of the current acreage by end 2009 and a review of the existing PSC by end March 2010.


Ghana Is Angry At ExxonMobil, Ghana’s petroleum authorities are dissatisfied with the ways and means by which ExxonMobil, the world’s largest corporation, is trying to gain a foothold in the continent’s newest offshore exploranon play. Kosmos confirmed it had entered into an agreement with ExxonMobil but the Ghanaian government has said that the agreement is illegal and will not honor it.

“We have formally notified (Kosmos) that we do not recognize whatever agreement they reached with ExxonMobil – we told them we disapprove of it because it’s illegal,” a GNPC source was quoted as saying last week. The source said Kosmos had violated Ghanaian laws when it shared confidential exploration data with over 20 companies for its own commercial purposes without giving GNPC any prior notification.

…Wants To Buy Kosmos Jubilee Stake

Ghana National Petroleum Corp. has the funds to buy a stake in the Jubilee oil field from Kosmos Energy LLC, according to Kwame Ntow Amoah, head of economic evaluation and monitoring at the state-hydrocarbon company.

Ghana National, also known as GNPC, is in talks with Kosmos about the price and other issues and has secured the money from “at least two” banks, he said today by mobile phone from Accra. He declined to name the lenders or comment on the price.

GNPC will consider proposals from potential partners once the purchase is complete. he said. “The Chinese, the Americans, the British, all of them are welcome to bring proposals and we will look at them at the second stage,” Amoah said. GNPC could choose one company to work with or a combination of partners, he said, adding that there isn’t a date by which a decision on the sale must be made.

Ghana’s nascent oil industry, still a year away from production of oil for export, has attracted attention from some of the world’s top energy companies. British Petroleum too has been counted as one of those interested in Kosmos’ stake in Jubilee. In early October 2009, Kosmos said it had agreed to sell its Ghanaian assets, including its 23.49 percent stake in Jubilee, to Exxon Mobil Corp. for $4 billion. Ghana’s government disapproves of the agreement and is still in negotiations with Kosmos. Reserves estimates of Jubilee he has been said to range from 750MMBO to 2Billion by all sorts of analysts. GNPC already has a 13.75 percent stake in the field.

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