Agreement, Falklands Islands
& East Falkland Islands, FOGL Northern & Southern Area Licences
- August 2012
Following on from the announcement
of the farm-out to Edison International in June 2012, Stellar Energy
Advisors is now pleased to announce the signature of an agreement between
Falkland Oil and Gas ("FOGL") and Noble Energy Falklands Limited
("Noble"), an affiliate of Noble Energy, Inc. (NYSE: NBL),
for the farm-out of exploration licences in the East Falklands Basin.
Summary terms of the Farm-Out Agreement:
will farm-in to the Northern Area Licences for a 35% interest except
for two excluded areas. FOGL will continue as operator of the entire
Northern Area Licences until early 2013, when operatorship of the
farm-in area will be transferred to Noble.
excluded areas within the Northern Area Licences will be delineated
both geographically and stratigraphically and comprise the Loligo
complex and the Nimrod-Garrodia complex. Noble will not participate
in certain stratigraphic horizons in these excluded areas and FOGL
will retain a 75% interest and operatorship with Edison International
S.p.a ("Edison") holding the remaining 25% interest. However,
Noble will remain a participant in the excluded areas regarding other
will also farm-in to the Southern Area Licences for a 35% interest,
with FOGL continuing as operator of these licences until no later
than early 2014, when Noble will become the designated operator.
will be proposing to the partners that the Scotia prospect in the
Northern Area Licences will be drilled in the fourth quarter of 2012
immediately following the FOGL Loligo well.
financial contribution comprises the following elements:
of the Scotia well costs, including associated costs incurred during
$25 million cash contribution to be paid in January 2013 predominantly
relating to certain historical costs.
of the costs of the Southern Area Licences commitment well.
of a discretionary exploration well, should Noble elect to participate
in the well.
total investment over the next 3 years is currently estimated to range
between $180 million and $230 million.