African Petroleum reinstates Gambia Licenses

African Petroleum reinstates Gambia licenses

LONDON -- African Petroleum has entered into an agreement with the Government of the Republic of The Gambia to reinstate the company’s Alhamdulilah License Block A1 and License Block A4, and settle all prior issues concerning the Gambia licenses including the discontinuation of arbitration proceedings.

The reinstatement of the licenses is a significant and positive step for the company, particularly following the recent oil discoveries by Cairn Energy in Senegal.

African Petroleum has also agreed to a revised initial exploration period that will expire on Sept. 1, 2016, in return for a commitment to drill an exploration well on one of the Gambia licenses and reprocess 3D seismic on license Block A4 prior to Sept. 1, 2016.

African Petroleum holds a 100% interest in the Gambia licenses through its wholly owned subsidiaries African Petroleum Gambia and APCL Gambia.

Stuart Lake, African Petroleum’s CEO, commented, “These two discoveries made at FAN-1 and SNE-1 are reported to have proved excellent quality reservoirs, with the SNE-1 well analysis showing net oil pay of 36 m and oil of 32° API from samples of gas, oil and water recovered to surface1."

"According to this announcement, preliminary estimates suggest that the SNE-1 discovery is highly likely to be a commercial discovery,” Lake added.