PA Resources is farming out a 72.5 percent interest in the exploration licence Marine XIV offshore the Republic of Congo.
Under the deal, the Norwegian listed oil and gas group will sell 29.4 percent working interest in Marine XIV to SOCO Exploration and Production Congo (SOCO EPC).
It is also selling 21.55 percent to a unit of Lundin Petroleum and 21.55 percent in Raffia Oil SARL.
SOCO EPC will become the operator of the block.
PA Resources will retain a 12.5 percent interest in the licence and the national oil company, Societe Nationale des Petroles du Congo, will retain its 15 percent.
In return, the farm-in participants will pay their share of PA Resources’ past costs, costs for a 3D seismic programme and for the first well to be drilled on the Marine XIV – subject to a maximum cost of US$30 million.
Additional costs will be paid should the farm-in participants participate beyond the first drilling period.
“This farm-out provides an excellent opportunity for PA Resources to speed up the exploration activities in the license to a minimized cost for the group,” said CEO Ulrik Jansson.
The license block Marine XIV is located in the Lower Congo Basin offshore the Republic of Congo.
The block comprises three discontinuous sections located in water depths ranging up to 110 metres and covers approximately 265 square kilometres.
PA says there has been previous exploration activity on the block resulting in “some” oil discoveries.