- The government of Somaliland has given the green light for Genel Energy to take a 50% operated stake in the Odwayne production sharing contract.
Genel entered the farm-in agreement earlier this month with Australia’s Jacka Resources which will see the London-listed company fund the exploration programme over the Odwayne Block, including the acquisition of 500 kilometres of 2D seismic and the drilling of one well.
Tendering for the 2D seismic contract is scheduled to start during the first quarter of next year. Jacka said the total cost of the work programme for the third and fourth exploration phases of the PSC was estimated at about $50 million.
“All the parties are very pleased with the early approvals of the transaction by the government of Somaliland which allows for a quick and smooth transition of the operator role to Genel,” Jacka chairman Scott Spencer said in a statement on Tuesday
He added that work on the exploration programme had started, with an airborne gravity and magnetic survey already underway which will be completed by Genel.
The completion of the farm-in will see Jacka’s stake in the Odwayne PSC reduced to 30% while Petrosoma’s 20% equity remains unchanged at 20%.
The Odewayne Block covers about 22,000 square kilometres in the south-west of Somaliland, directly to the west of Block SL10B/SL13 which Genel also recently farmed in to.