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Ministerial approval of TOTAL farm-in in Avalon (FEL16/27)

 

24 October 2017

TOTAL will take a 50% working interest and Operartorship 

 

SOSINA Exploration Ltd. is hereby pleased to confirm that the agreed farm-in by TOTAL E&P Ireland B.V. ("TOTAL"), a wholly owned subsidiary of TOTAL S.A. is now completed. This follows approval of the Minister of State at the Department of Communications, Climate Action and Environment to the transfer of 50% equity and Operatorship of LO 16/27 (Avalon) to TOTAL.

In June 2017, SOSINA announced that Providence and SOSINA Exploration Limited had signed a Farm-in Agreement ("FIA") with TOTAL whereby TOTAL will take a 50% working interest and Operatorship in LO 16/27, subject to Ministerial approval. Under the terms of the FIA, TOTAL:

 

 

• Pays its pro-rata share of past gross costs of c. USD 0.175 million.
• In addition to its pro-rata share, pays 21.4% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of USD 1.33 million.
• In the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence, and a subsequent decision is taken to drill an exploration well, TOTAL will pay 60% of the drilling costs, subject to a gross well cap of USD 42 million.

 

With the farm-in now completed, the revised equity in LO 16/27 is TOTAL (Operator - 50%), Providence (40%) and SOSINA (10%).

 

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About Avalon Avalon is located in the Porcupine Basin. Click to read the licence description.

 

 

 

 

  

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