Shoreline Canadian Overseas, ShoreCan, an affiliate of the Canadian Overseas Petroleum Limited, COPL, said it has completed the acquisition of 80 per cent of the share capital of a Nigerian oil company, Essar Exploration and Production Limited, EEPL, giving it controlling interest in Oil Prospecting License, OPL 226.
In a statement by the company, Essar Nigeria’s sole asset is a 100 per cent interest and operatorship of OPL 226 located 50 kilometers offshore in the central area of the Niger Delta, adding that under the terms of the production sharing contract governing OPL 226, Essar Nigeria is required to seek ministerial consent for the transaction.
According to the company, under the terms of the acquisition, ShoreCan will take over management and have majority of directors on the Board of Essar Nigeria immediately.
The company noted that Essar Nigeria was granted an extension to the first phase of the Production Sharing Contract, PSC, to December 31, 2017, while the remaining commitment on the first phase of the PSC is the drilling of one well.
ShoreCan stated: “COPL’s technical team has identified a drilling location, which will be an offset to an oil discovery made in 2001 by a previous Contract holder.
“OPL 226 has an area of 1530 square kilometers and is located approximately 50 km offshore the central delta region of Nigeria in water depths ranging from 40 to 180 meters.
“It offers oil appraisal and development opportunities having near term oil production potential and significant exploration upside.
“Historically, five wells have been drilled, with the first oil discovery on the block made in 2001in the fifth well after earlier drilling intersected predominantly gas-bearing sands.”