Tenure
3+2+2 years Exclusive Exploration Contract (EPSC)
AFRENEERGY intends to commence talk with the Cameroon authorities concerning the signing of a PSC that will cover the AFRENERGY Blocks and AFRENERGY fields and the company has received a positive sign from Cameroon Authorities;
- AFRENEERGY is willing to work with a potential financial partner to help capture these opportunities, in return for a carried interest.
- AFRENEERGY and investors will form a joint operations team and AFRENEERGY will manage relationships with Cameroon government.
The AFRENERGY PLC will fall under the new Cameroon government fiscal terms based on a recently approved PSC Model - Legal, Contractual and Fiscal Framework for E&P activities in Cameroon.
Tenure
3+2+2 years Exclusive Exploration Contract (EPSC)
Royalty
8-10%
Commitments
Seismic acquisition, reprocessing and drilling of at least 3 wells
State Participation
5-10% state participation
Oil Code: Law N 99/013 of December 22, 1999, and its Enforcement Decree N 2000/465 of June 30, 2000;
Gas Code: Law N 2012/006 of April 19, 2012 and its Enforcement Decree N 2014/3438/PM of October 27, 2014, aiming to promote investments in the downstream gas sector;
Law N 2011/025 of December 14, 2011 relating to the development of the associated gas aiming to promote the reduction of gas flaring
Signature Bonus
Expect a range of $2-5 Millions
Cost recovery
75% of production after Royalty
Taxes
Exemption
Production Sharing Pattern
Production range - State / Contractor
0-50 MMBO - 40% / 60%
50-100 MMBO - 45% / 55%
100-200 MMBO - 50% / 50%
200 MMBO - 55% / 45%
All this will be sustained trough a fast-track development program that can yield cashflow and revenues within 18-24 months. We believe a thorough technical review of the Afrenergy Acreage (M-1) field (East/West wing) will prove minimum contingent resources in excess of 300 BCF of which some 170 BCF can be recovered as well as 220 Mboe wish 50 MBOE can be recover. These opportunities would fit well with a company looking to enter West Africa or willing to expand its portfolio of oil and gas assets with proven producible reserves or looking to enter or expand production.
