Page 18 - AfrOil Week 26

AfrOil NEWS IN BRIEF AfrOil

“Partnerships between national oil compa- OilLR, which was signed on February 28, 2020, the quarter.
nies and international oil companies is a great and amended on March 29, 2020, is progress- Transglobe Energy, June 29 2020
opportunity for successful transfers of skills ing towards completion. The first payment into
and technology. The call for such joint-venture escrow is now expected in late July or first half San Leon Energy reports
partnerships in Uganda is a clear example of for- of August. While this is later than originally
ward-thinking from [UNOC] and the govern- planned due to factors arising from the pan- on 2019 results
ment. Uganda has a talented and trained youth demic, both parties remain committed to com-
who is eager to participate in the development pleting the transaction. The backstop date for San Leon, the independent oil and gas produc-
of the country’s hydrocarbons sector, and part- completion has been amended to September 15, tion, development and exploration company
nerships are the way forward to achieve that,” 2020, and both parties hope to have all funds in focussed on Nigeria, is pleased to announce its
declared NJ Ayuk, Executive Chairman at the escrow well before that date. audited final results for the year ended Decem-
African Energy Chamber. The Company is continuing discussions with ber 31, 2019. The full annual report for the year
The African Energy Chamber encourages other potential farm-in partners to the Thali PSC to December 31, 2019, is available on the Com-
all eligible exploration and production compa- on similar terms to those agreed with OilLR. As pany’s web site and will be posted to shareholders
nies in Africa and abroad to participate in the previously announced, the HoT has been struc- shortly.
round and form joint-ventures with UNOC. tured to accommodate such additional investors. Corporate: returned approximately $66.0mn
This is a proven way to both develop local con- The Company also notes that it is in discus- to shareholders during the year and post year-
tent by bringing in key expertise and capital into sions regarding a further extension to its Loan end, delivering on the company’s commitment
Uganda and to efficiently enter a proven hydro- Facility originally announced on April 19, 2019, to shareholder returns (tender offer completed
carbons province by directly partnering with the and extended to June 30, 2020, and expects to in early 2019, repurchasing $30.5mn of Com-
national oil company. conclude this extension before the expiry of the pany shares, a share repurchase of $2.0mn of
African Energy Chamber, June 26 2020 current term. This Facility is held by Pegasus Company shares was also completed between
Petroleum, a company beneficially owned by the October 2019 and January 2020, a special divi-
Pancontinental and FAR to Company’s Chairman and CEO, Jeremy Asher. dend of $33.0mn declared in May 2020, giving
Jeremy Asher, Tower’s Chairman and CEO, a dividend yield of approximately 30% as at the
relinquish Kenya Block L6 commented: “We are pleased that this trans- date of dividend announcement); appointed Lisa
action is still on track, and we look forward Mitchell as Chief Financial Officer and Executive
Pancontinental Oil & Gas and its subsidiary to having funds in hand in good time for the Director; completed the sale of interests in four
Afrex refer to the ASX announcement made by it resumption of normal oil and gas operations. Polish concessions to Horizon Petroleum Ltd as
on April 22, 2020, headed Kenya L6 in response While the timing of the removal of travel and part of the Company’s strategy to dispose of non-
to default notices received from FAR Ltd. other restrictions remains uncertain, we are core assets.
Pancontinental has reached an agree- using this time to get as fully prepared as we can OML 18 Operational: Eroton Exploration
ment to settle this long-standing matter with for drilling and testing the NJOM-3 well.” and Production (the operator of OML 18)
FAR. The amount which was the subject of Tower Resources, June 30 2020 received a 20-year lease renewal for OML 18.
the 2020 Default Notices totals $567,145.80 The lease will now expire in 2039.
(AUD827,950.07). Pancontinental will make a Full-field gross oil production before allo-
payment of $150,000 (AUD218,978.10) into a PERFORMANCE cated losses was around 39,000 bpd. Removing
nominated account of Operator Flow Energy the effect of field downtime, gross production
(subsidiary of FAR) as full and final settlement Egypt: Transglobe Energy during uptime was approximately 50,000 bpd
of any and all outstanding cash calls relating to (2018: 45,000 bpd).
Kenya Block L6. The parties will then execute the issues operations update Two new wells drilled and completed with
Surrender and Termination Agreement, to start the third started (completed in April 2020).
the process of exiting from Kenya L6. Western Desert-South Ghazalat (100% WI): Fourteen workovers were performed during the
Pancontinental Oil & Gas, June 26 2020 SGZ-6X well continues to produce from the year (cement packer reservoir zone changes, gas
Upper Bahariya reservoir at a rate restricted to lift installations and retrofits, perforations and
a field estimated 200-250 bpd light and medium hot oil treatments).
FINANCE crude to evaluate the well, manage the reservoir Oil sales averaged approximately 29,500 bpd
and optimise the separation of oil, gas and water. (2018: 30,000 bpd) after overall downtime of
Tower Resources issues the Company’s revised 2020 budget, there has line downtime) and pipeline losses of 22% (2018:
Eastern Desert (100% WI): Consistent with 24% (largely associated with NCTL export pipe-
update on financing related been no drilling activity in the Eastern Desert 12% downtime, 26% pipeline losses).
during Q2-2020.
Significant progress was made on planning
to farm-out of Thali PSC partner continue to further reduce operating facility, targeting reduced export downtime and
Discussions with our joint venture operating new oil export pipeline and offshore storage
offshore Cameroon expenditures. Material operating cost reductions losses - on track to be completed in the coming
in Egypt require the assistance of the Company’s quarters.
Tower Resources has provided an update regard- Egyptian joint venture partner, Egyptian Gen- Financial: Some $43.2mn received in cash
ing the farm-out process in respect of its Thali eral Petroleum Corp. (EGPC). from loan notes mechanism in OML 18 in
production-sharing contract in Cameroon, Despite restrictions on travel, constructive 2019, further strengthening San Leon’s financial
conducted through its wholly-owned subsidiary negotiations with EGPC to amend, extend and position and outlook, also enabling the Com-
Tower Resources Cameroon. consolidate the Company’s Eastern Desert con- pany to start to deliver its shareholder return
The binding Heads of Terms (HoT) with cession agreements have continued throughout commitment.

P18 www. NEWSBASE .com Week 26 01•July•2020