During a recent visit to Angola by senior ROC Board members and executives, the Company confirmed its intention to move towards triggering the Cabinda South Block PSA. Subject to receipt of relevant Government approvals, ROC expects the PSA to be triggered within two months.
In a separate, but related, move, which is also subject to Government approval, ROC has agreed to acquire an additional 20% Working Interest (25% Contributing Interest) in the PSA from current co-venturer Force Petroleum. Subsequent to this transaction being completed, ROC will be the only non-Government participant in the Cabinda South Block with an 80% Working Interest (100% Contributing Interest). The Angolan national oil company, Sociedade Nacional de Combustíveis de Angola ("Sonangol"), will hold the other 20% Working Interest. The consideration to be paid by ROC to Force includes an upfront cash payment and a consideration for past costs, together with the provision of a 3% (out of 20%) Net Profit Interest.
Commenting on the most recent developments relating to the Cabinda South Block, ROC's Chief Executive Officer, Dr John Doran, stated that:
"Because last week's visit to Angola by senior ROC officials was very constructive and encouraging it is appropriate and timely to advise ROC shareholders of the Company's firm intention to increase its interest in the Cabinda South Block and, more importantly, to commence exploration on the ground in early 2005, after a 32 year period of industry inactivity."
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