Ghana is a world hot spot for oil development. Petrel holds a 30% interest in a licence agreement over a very prospective onshore/offshore block. The 1,532 km2 Tano 2A Block is held by a private Ghanaian company, owned 60% by Clontarf Energy, 30% by Petrel, and 10% by local Ghanaian interests.
- Pan Andean and the Ghana National Petroleum Corporation (GNPC) executed a valid agreement in 2008 in respect of exploration of the Tano 2A area;
- A revised Petroleum Agreement was signed between the parties and the Ghana National Petroleum Company (GNPC) in March 2010;
- Pan Andean, following protracted negotiations with the GNPC instituted a suit in March 2014 seeking for the reliefs thereon;
- Based on the good faith shown by the Ministry of Energy and Petroleum to amicably settle the matter out of court, Pan Andean moved to discontinue the matter in July 2014;
- The amended area for exploration and production rights for the Tano 2A Petroleum Agreement for the block are set out as below. We now await the Ministry to implement the agreed settlement and process the same expeditiously.
- We await parliamentary ratification.
Tano onshore oil seepages have been recorded for a century. An initial concern was that these seepages might relate to a different source rock to that of the nearby discoveries. Petrel’s technical team has long believed that both the oil seepages as well as most of the discovered oil originated in the same source rock, deep out to sea.
Industry exploration data released during 2012 support the Company’s view that the extensive oil shows and seeps on the Tano shoreline are sourced from the prolific Cenomanian-Turonian sequences of the deeper Tano Basin, which also charged the huge producing Jubilee Field. The possible migration of this oil across the Tano shelf presents opportunities for traps within both the deeper offshore and the shallow marine-onshore sections.
FISCAL TERMS IN GHANA ARE COMPETITIVE
The overall state take is very reasonable at around 50% in comparison to many African oil producing countries. Royalty on oil and gas are 12.5% and 10%, with an initial carried interest of 10% for the GNPC (State Oil Company). A further 15% can added through paying and income tax is approximately 35%.
The initial work programme is for three years from ratification, with a minimum work programme of $25 million. Further extensions can be obtained on the initial three year programme.
GHANA: 1ST PHASE SEISMIC WORK COMPLETED
While awaiting confirmation of ratification Petrel has pushed ahead with its programme by investing approximately $1 m in:
- Purchase of available well reports & seismic data
- Analysis of extensive geological data: summary report.
- Interpretation of all available seismic data on the licence: geophysical report
- Analysis of structural & stratigraphic trap leads identified on the seismic: report completed
The work has highlighted a number of high potential target areas.
Ghana – Tano Basin AGM Presentation (PPT – 9MB)
Tano Basin Plays: Deep offshore kitchen and migration up-dip
Click map to enlarge
Going forward we await ratification of the amended Petroleum Agreement by Cabinet and Parliament, in accordance with law. Once this process is complete the company will go to seismic re-processing, collection and analysis of oil seeps and planning seismic survey. A seismic acquisition programme and processing will commence followed by interpretation and identifying drill targets. Once the drill targets are identified we can then move to drilling.