Tullow has agreed to assign a 42.5 percent interest in the license to Addax Petroleum Gabon Limited, a wholly owned subsidiary of Addax, through its wholly owned subsidiary, Tullow Gabon Operations Limited. Tullow will continue as operator of the license and will hold the remaining 57.5 percent interest. The transaction is subject to the approval of the Government of Gabon. As part of this transaction, Addax will bear the drilling costs of the KTS-1 well. In the event of success on this well, the farm-out agreement further provides for Addax to bear the drilling costs of up to two additional exploration and appraisal wells on the license.
The Kiarsseny Marin concession contains a number of existing oil discoveries – Topaze, Iguega and Equata – as well as numerous exploration opportunities. Some 24 wells have been drilled in the license to date, many of which have encountered oil and gas. Commenting on the announcement today, Aidan Heavey, Chief Executive of Tullow said:
" Tullow's West African assets are at the core of our international growth strategy and w e will continue to seek opportunities in this region. The Topaze well is part of an active exploration program for the first half of 2004 covering all of Tullow's core areas, with other wells also drilling or imminent in Bangladesh and the UK "
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