Block Energy plc is making its first move into offshore West Africa, announcing a conditional agreement with Pilgrim Exploration Limited that gives the company exposure to approximately 5,331 square kilometres of acreage across two contiguous offshore licences in Gabon — the Ndjila and Mpari production sharing contracts (PSCs) — alongside a proposed £6.3 million equity fundraise to fund the transaction.
Under the terms of the deal, Block Energy will provide a convertible loan to Pilgrim, which holds a 90% interest in both PSCs through its subsidiaries. Upon conversion of the loan and receipt of regulatory approvals from Gabonese authorities, Block would hold a 76.5% economic interest in the licences — a substantial position in an established oil-producing jurisdiction.
The licences contain four historical oil discoveries and offer additional pre-salt and post-salt exploration potential, making the acreage attractive both as a near-term development play and a longer-term exploration asset. Block Energy’s immediate priorities following completion of the transaction will be to evaluate the discovered resources, develop a field development plan, and advance discussions with potential drilling partners.
“This transaction represents an excellent value-accretive acquisition of discovered oil and high-potential exploration in a well-known oil producing jurisdiction,” said CEO Paul Haywood. “We believe that the assets combine an anchor development opportunity with significant upside and broad running room.” He added that the Gabon assets provide both geological and jurisdictional diversification alongside the company’s existing portfolio in Georgia.
The planned fundraise will be conducted in two closings and includes a retail offer available to existing shareholders. Pilgrim Exploration CEO Simon Barry said both companies plan to work closely with Gabonese authorities to advance development of the licences.
Source: worldoil.com