Oryx Petroleum Corporation announced that a wholly-owned subsidiary has entered into a Farmout Agreement with a subsidiary of Total S.A., providing for the transfer of the Corporation’s 30% participating interest in the Haute Mer B exploration license offshore Congo Brazzaville to the buyer or an affiliate.
Subject to closing, Oryx Petroleum’s interests in Haute Mer B will be transferred for cash consideration of $8 million, payable at closing. The transfer will be deemed to be made with effect from January 1, 2018. As a result, the Buyer has agreed to reimburse the Corporation for costs incurred by it in relation to Haute Mer B between January 1, 2018 and the date of the Farmout Agreement and to carry the Corporation’s share of costs from the date of the Farmout Agreement to the closing of the transaction. This is expected to result in a further payment to the Corporation, at closing, of approximately $5.3 million. The Corporation remains responsible for any losses attributable to and arising from Haute Mer B operations prior to January 1, 2018.
The Farmout Agreement is subject to, among other customary conditions, waiver of pre-emptive rights held by other partners in Haute Mer B, and the consent of such partners and the government of the Republic of Congo to the transfer of the Oryx Petroleum interests.
The Corporation expects the transaction to close before the end of June 2018.
Haute Mer A deep water exploration license area operated by CNOOC contains 6 MMbbl of best estimate gross contingent oil resources. (Source: Oryx Petroleum)