New Age (African Global Energy) Ltd. has signed a definitive conditional agreement to transfer all participating interests and operatorship in the Etinde permit, offshore Cameroon, to Perenco SA, according to a release by Bowleven PLC.
The transaction is subject to several approvals, including customary regulatory approvals by the Cameroon government and the approval of Etinde JV partners. Under the terms of the joint operating agreement, both Lukoil and Bowleven have a 30-day right of preemption over New Age's interest.
Notwithstanding the transaction, Bowleven will continue to be entitled to a final investment decision (FID) payment of $25 million from its Etinde JV partners which, following completion of the transaction, would include Perenco.
The Etinde permit (former Block 7) lies in shallow water in Rio del Rey basin and comprises four proven reservoir intervals within the Pliocene and Miocene formations. Net P50 contingent resource volume is 58 mmboe.
The permit is in the appraisal and development stage, with FID pending. First production is expected in 2023.
New Age is operator of Etinde (37.5%) with JV partners Lukoil (37.5%) and Bowleven (25%).
