Offshore West Africa-focused Chariot Oil & Gas reported Monday that a farm-out agreement signed in August between it and Cairn Energy has been approved by the Ministry of Hydrocarbons in Mauritania.
The deal concerns a license that covers the C19 block offshore Mauritania. As part of the farm-out agreement, Cairn has committed to pay approximately $26 million for the cost of the 3D seismic data acquired by Chariot on the block as well as other back costs incurred by the firm.
Cairn now holds a 35-percent interest, while Chariot retains a 55-percent stake and operatorship of the block. The Société Mauritanienne des Hydrocarbures retains 10 percent as a carried interest.
Chariot said a resource update for the block will be published during the first quarter of 2014. Drilling planning and the evaluation of partnering options will begin afterwards.
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