AziLat Acquires OGX's Stakes in 2 Blocks Offshore Brazil
AziLat Ltd. (AziLt), the South America focused oil and gas exploration company backed by Seacrest Capital Group, announced Monday that it has entered into a transaction (the transaction) with OGX Petroleo e Gas S.A. (OGX), to acquire OGX’s full interest in two blocks (the blocks), offshore Brazil.
The blocks are located in the Ceara Basin and the Potiguar Basin in the Equatorial Conjugate Margin offshore Brazil and are operated by ExxonMobil Exploracao Brasil Ltda (ExxonMobil).
Upon completion of the transaction, the participating interests in the blocks will be as follows:
- Ceara Basin (Block CE-M-603)
- AziLat Ltd. - 50 percent
- ExxonMobil - 50 percent (Operator)
- Potiguar Basin (Block POT-M-475)
- AziLat Ltd. - 65 percent
- ExxonMobil - 35 percent (Operator)
Under the terms of the transaction, AziLat, through its local subsidiary AziBras Exploracao de Petroleo e Gas Ltda. (AziBras), will assume the OGX working interest in the two licenses following the approval of the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis - ANP.
Petroleum Geo Services A.S.A. is shooting a 428 square miles (1,100 square kilometers) 3D seismic survey on Block CE-M-603, already underway, and a 386 square miles (1,000 square kilometers) 3D survey in Block POT-M-475 is expected to commence in 1Q 2016.
AziLat Managing Director, Michael Stewart, commented:
“We are extremely pleased with this transaction. The two blocks are located in the Ceara and Potiguar basins of the Conjugate Equatorial Margin of Brazil, one of the most exciting exploration areas globally and home to a number of giant discoveries. These blocks were selected on their specific potential to contain hydrocarbon accumulations, similar to those found elsewhere on the equatorial margin. We look forward to working with ExxonMobil on progressing the work program.
We continue to evaluate opportunities offshore Brazil as we expand our presence in this established oil producing region.”
Seacrest Capital Group Managing Partner, Erik Tiller, commented:
“This transaction follows a thorough and lengthy review of the Brazil offshore basins and a disciplined filtering of a number of opportunities. The AziLat team combines expert regional knowledge with deal-making capabilities, both of which were crucial to this transaction. These blocks are highly attractive and give us the scope to apply our team’s regional and international experience of the Atlantic Margins to progress the understanding of these assets.”
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