In a sign of growing interest, New York-listed Erin Energy Corporation said it had agreed to grant an 80 percent interest in its A2 and A5 blocks to Australia’s FAR.
The Gambia Government agreed to transfer to FAR of Erin Energy’s 80 percent operated an interest in two of the country’s offshore blocks.
The move followed the small nation’s severing of business with Oslo-based African Petroleum for failing to fulfill its commitments.
Under the approved farm-in terms, FAR must fund Erin up to $8 million dollars through an exploration well that will likely be drilled in late 2018.
It is estimated that prospective resources across the blocks (A2 and A5) are at more than one billion barrels of oil.
The blocks are adjacent to and on trend with Erin Energy’s shares on Senegal’s SNE oil field discovered offshore to the north.
The country has a total of eight blocks: six offshore and two onshore. Most are unallocated.
Gambia’s government said it will reviewing terms and conditions of agreements made under the country’s exiled leader, Yahya Jammeh.
The change of government had stirred considerable interest from very credible companies, and officials say they will award contracts via tender and direct talks.