Discover Exploration Farms Out Comoros PSC to Tullow Oil

Source Press Release
Company Tullow OilBahari Resources LimitedDiscover Exploration plc 
Tags Asset Deals, Deals, Upstream Activities
Date November 29, 2018

Discover Exploration Limited (“Discover”), an upstream oil and gas company, announces that its wholly-owned subsidiary Discover Exploration Comoros B.V. has signed a binding agreement to farm out a 35% working interest in its Production Sharing Contract (PSC) covering blocks 35, 36 & 37 offshore the Union of the Comoros (“Comoros PSC”) to Tullow Comoros Limited, a wholly-owned subsidiary of Tullow Oil plc (“Tullow”).

As part of the transaction, Tullow will become the operator, and will partly carry Discover for a 3D seismic survey and the first exploration well. The transaction is subject to governmental consent.

Simultaneously, Discover has signed a binding agreement to acquire (subject to certain conditions) the entire issued share capital of Bahari Resources Limited (“Bahari”), its 40% joint venture partner in the Comoros PSC.

Following completion of both transactions, Discover will hold a 65% non-operated working interest in the Comoros PSC (through its wholly-owned subsidiaries Discover Exploration Comoros B.V. and Bahari), while Tullow will hold the remaining 35% and operatorship (through its wholly-owned subsidiary Tullow Comoros Limited).

The Comoros PSC covers a deep water area of 16,063 km2 (circa 4 million acres) and is outboard of circa 200 trillion cubic feet (“TCF”) of gas in place discovered in Rovuma Areas 1 and 4, offshore Mozambique. The joint venture partners of Rovuma Areas 1 and 4 include Anadarko Petroleum Corp., China National Offshore Oil Corp. (CNOOC), Eni S.p.A.,  ExxonMobil Corp., Mitsui & Co. and  PTT Exploration and Production (PTTEP).

In a Competent Persons Report dated August 2018, ERCE, the UK-based independent energy consulting group, estimates that two partly stacked prospects in Comoros blocks 35, 36 & 37 together contain gross mean unrisked prospective resources of circa 7.1 billion barrels of oil (+1.1 TCF of associated gas) in an oil case or 49 TCF of non-associated gas (+2.3 billion barrels of condensate) in a gas case.

Following ratification of the Comoros PSC in 2014, Discover and Bahari acquired andinterpreted circa 3,900 km of 2D seismic data, and conducted a range of exploratory studies. This farm out to Tullow marks the successful completion of the first exploration period. The partnership is now preparing to acquire a 3D seismic survey, the first ever in the Comoros.

Michael Blaha, Executive Chairman of Discover, said: “We are excited that Tullow joins Discover in this highly prospective license. With its extensive deep water drilling expertise, Tullow is a strong partner for this venture. Together, we look forward to unlocking the significant potential of our Comoros blocks.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd