Under the terms of the Option, TOTAL has the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & SOSINA subject to the payment of USD27 million to Providence and SOSINA (USD21.6 million and USD5.4 million, respectively). The Option can only be exercised by TOTAL within 60 business days of the completion (plugging and abandoning) of the upcoming 53/6-A well, which is planned to spud in late June 2017 targeting the Druid and Drombeg prospects.
The total consideration to be paid by TOTAL to Providence & SOSINA (on a pro rata 80/20 basis) is as follows:
If TOTAL subsequently elects to exercise the Option, Providence, SOSINA and TOTAL will enter into an agreed form Farm-in Agreement to effect the transfer of 35% working interest and Operatorship in FEL 2/14 to TOTAL. Any farm-in would be subject to the approval by the Minister of Communications, Climate Action and Environment.
TOTAL is a global integrated energy producer and provider, a leading international oil and gas company, and a major player in solar energy with SunPower and TOTAL Solar. TOTAL's 98,000 employees are committed to better energy that is safer, cleaner, more efficient, more innovative and accessible to as many people as possible. As a responsible corporate citizen, TOTAL focuses on ensuring that its operations in more than 130 countries worldwide consistently deliver economic, social and environmental benefits.
Mr. John Ødegaard,
Chairman of the Board
Mobile: +45 27 26 00 03
SOSINA Exploration Ltd. is an independent oil and gas exploration company. The Company was founded in 2004, but with roots back as a sister company to the company Odegaard Ltd. acquired in 2006 by Schlumberger Inc.
SOSINA's active oil and gas portfolio includes offshore interests in Ireland and the UK. SOSINA's portfolio is balanced between appraisal and exploration assets. Comprehensive information on SOSINA and its oil and gas portfolio is available from SOSINA's website at www.sosina.co.uk.