Genel Energy acquiring 40% stake in highly prospective Ethiopian oil block
August 12 2013, 7:18am
Deal almost done: Genel's acquisition has to be signed off by the Ethiopian authorities.
Genel Energy (LON:GENL) is to acquire a 40% stake in Ethiopia’s Adigala block from a private company called New Age.
The exact terms of the deal weren’t disclosed. However, Genel will pay a contribution to back-costs and towards a planned 2D seismic programme.
An earlier reprocessed 2D survey over 520 kilometres provided evidence of a working petroleum system, as did other tell-tale signs such as oil seeps and surface outcrops of type of rock that might contain oil.
The area is said to bear all the hallmarks of the prolific producing Jurassic Rift Basins of Yemen.
Several large potential structural closures (oil traps) have been identified on existing data.
The Adigala Block covers around 27,000 square kilometres and borders Djibouti to the north and Somaliland to the east.
The deal is expected to complete next month and requires sign-off from the Ethiopian authorities.
Dr John Hurst, Genel’s head of exploration said: "The Adigala block farm-in is a natural extension of our exploration strategy, which seeks to acquire material equity positions in hydrocarbon basins with significant potential, as well as complementing our extensive interests onshore Somaliland where drilling is planned for 2014.
"We look forward to working with our new partners to high-grade the prospectivity on the block and add further depth and materiality to our exploration inventory."
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