Australian energy company WHL Energy Limited is pleased to announce that the Government of the Republic of the Seychelles has reached agreement on the terms related to a proposed farmin by a leading multinational petroleum company into WHL Energy’s offshore Seychelles project area.
The Government approval, including a proposed change of operatorship for the offshore licenses and proposed amendments to work schedules, related to the WHL Energy permits are a major conditions precedent set out in a LOI between WHL Energy and the proposed farminee - aside from final Board approval.
WHL Energy announced on March 25, 2013, that it had executed a non-binding LOI with a top 100, Global Fortune 500 Company for a potential farmin to WHL Energy’s 100% owned, 17,345 sq. km exploration area, offshore Seychelles.
As highlighted in that guidance to the market, one of the key conditions for progressing the proposed farmin was the receipt of approval from the Seychelles Government and Regulators for a change in operatorship and amendments to the work program related to WHL Energy’s acreage. WHL Energy also reported it expected to recover some back-costs providing the binding proposal is acceptable to both the WHL Energy Board and the farminee’s Board.
“This is a significant milestone in the detailed process to conclude the farmout agreement. WHL Energy is very pleased with the progress that has been achieved in completing this major condition precedent that will now allow for completion of the due diligence process leading to a binding agreement.” WHL Energy Managing Director, Mr Steve Noske, said.
“We would particularly like to thank the Government of the Republic of the Seychelles and PetroSeychelles Ltd for their careful and considered support of the proposals put to them,” Mr Noske said.
The time-table for a final decision on those agreements remains at the discretion of the proposed farminee. The farminee has requested confidentiality until a binding proposal is approved by the board of the company. WHL Energy will keep the market informed of any further material developments in accordance with its disclosure obligations.