Assets

Philippines

Wessex completed the acquisition of Hague and London Oil BV (“HALO”) in October 2014, with the new entity being having been renamed as Hague and London Oil Plc. HALO now holds a 15% interest in Service Contract SC54A in the NW Palawan Basin, offshore Philippines. Its partners are NIDO Petroleum Ltd (operator, 42.4%, recently acquired by Bangchak Petroleum), Kairiki Energy (30.1%) and TG World (BV) Corp. (12.5%).

SC54A, a c.880 sq.km licence block, is located over the shallower area of sector SC54, where water depths are generally less than 120 metres. The Company sees the potential to exploit the proven oil potential of the Nido Limestone pinnacle reef play by using low cost development concepts. The entire block is covered by 3D seismic data and contains a number of exploration prospects and leads in both the Nido Limestone and overlying sandstones as well as three oil discoveries.

In September 2014, the operator announced that the current exploration period SC54A had been extended for three years from 5 August 2014 to allow the partners to evaluate the results of the discoveries made and determine future plans. On the expiration of this period, the partners can decide to move into the next exploration phase, which would require one well to be drilled in 2018.

Guyane

  • 3D Seismic
  • Eastern Slope (ES)
  • 2,500 sq.km
  • Oil Discovery
  • Zaedyus
  • 72m of net oil pay
  • 3D Seismic
  • (ES) 750 sq.km
  • (Central Area, CA) 4,000 sq.km
  • 4 Well Programme
  • WSX to 1.103%
  • CA Evaluation & Interpretation
  • New leads & Prospects identified
  • Path forward under discussion

HALO has an effective 1.103% interest in the Guyane Maritime Permit (GM), covering approximately 24,100 sq.km in the deep waters offshore French Guiana. The GM interest is held via a joint venture between HALO (44.11%) and Northern Petroleum plc (55.89%), using Northpet Investments Limited as the holding company that has a total interest of 2.5%. Other partners in Guyane are Shell (45% and operator), Tullow (27.5%) and Total SA (25%). The current exploration phase of the licence expires in June 2016.

Tullow obtained its interest in GM by acquiring Hardman Resources in 2007. It later identified deep water stratigraphic leads similar to those in its Jubilee Field discovery in Ghana. The objective of the first exploratory well (Zaedyus) in 2011 was to test that hypothesis. The subsequent discovery at Zaedyus provided confirmation and opened up what could be a major new oil province. Earlier that year, Tullow farmed down an interest to Shell who assumed operatorship after the first exploratory well.

The licence is split into three areas – the Eastern Slope, Central Area and Demerara Plateau. To date the company has participated in operations on five wells in GM all on the Eastern Slope – the Zaedyus discovery and the four subsequent wells. This means that most of the Permit remains untested. The Stena Icemax drill ship, which was contracted for the 4 well programme, moved away from GM in December 2013.

During 2014, the Guyane partners largely completed the evaluation and interpretation of the valuable body of information derived from drilling and from the new Central Area 3D seismic. A new portfolio of leads and prospects has been identified in the, so far, untested, Central Area. The French Guiana Joint Venture continues to discuss the path forward and no decisions have yet been made.

The Board continues to work closely with Northern Petroleum plc, the co-owner of Northpet Investments Limited and the combined 2.5% interest in Guyane Maritime, in order to determine the potential of the Permit and how best to realise its value.

Juan de Nova Est

  • TGS-Nopec Seismic
  • Reprocessed & interpreted
  • Fugro Seismic Purchased
  • Additional deep water data
  • Petroleum Systems Review
  • North & South Triangles
  • Deep not Shallow water
  • 5 year Renewal Application
  • Global as Operator
  • WSX Right to take 50%
  • Anticipate news on renewal application
  • Mutation to be determined

The Juan de Nova Permit expired on 30 December 2013 and is suspended pending approval by the French Authorities of the renewal application. Ahead of this application, a new Joint Venture agreement was signed with Jupiter Petroleum Juan de Nova Limited (a wholly-owned subsidiary of Global Petroleum Limited), granting Global the operatorship and giving Wessex the right to apply to take legal title to a 50% working interest in the event that the renewal is successful.

The renewal application includes the northernmost and southernmost parts of the original permit, which are considered to be the most prospective. If successful, the initial work programme is expected to be the acquisition of a grid of 2D seismic over the retained areas.

We anticipate news on the renewal during the first half of 2015.

Western Sahara

  • Awarded Bojador, 10 years
  • Cross Assignment Guelta, 10 years
  • Awarded Imlili, 3 years
  • Renewal of Imlili, 3 Years
  • Proposal to align and extend all 3 blocks to 2020
  • Third Party drilling relevant to SADR into 2015

Maghreb Exploration Limited (a wholly-owned subsidiary) and Comet Petroleum (SADR) Limited (a wholly-owned subsidiary of Tower Resources plc) each hold a 50% interest in three licence blocks in the SADR under Assurance Agreements– Bojador, Guelta and Imlili. The Assurance Agreements are valid for periods of up to ten years and confer the right to convert to Production Sharing Agreements upon the meeting of certain external conditions, including the recognition of SADR sovereignty and formulation of comprehensive tax laws.

During 2014, agreement was reached with the SADR authorities to renew the Imlili block for a period of 3 years from October 2014. The Bojador and Guelta blocks also expire in the relatively near future, and we have recently made a proposal to the authorities to align the end dates and extend all three Assurance Agreements to a uniform date at the end of December 2020.

The areas covered by our licence blocks lie almost completely in the zone controlled by Morocco since 1975 and there is currently no access. However, exploration activity is reaching the drilling stage in the licences awarded by Morocco over SADR waters and we anticipate third-party drilling relevant to SADR acreage commencing in Q4 2014.

United Kingdom

  • P1928 Award
  • Offshore Promote Licence
  • 2D Seismic Acquired
  • Regional Study Group
  • Early Relinquishment of P1928
  • 28th Seaward Award (98/7b. 98/8a, 98/12 (northern part))
  • Re-processing of 3D seismic data

During the first part of 2014, the company adopted a strategy of early relinquishment on all three of its existing South of England licences – P1928, PEDL 238 and PEDL 239 – in order to allow the areas to be included in the 2014 Licensing Rounds. Subsequently, the Company’s wholly-owned subsidiary, Wessex Hydrocarbons Limited, was awarded blocks 98/7b, 98/8a and 98/12 (northern part) in the 28th Seaward Round. However, it was decided not to apply for new licences under the 14th Landward Round.

The Company, as administrator of Promote Licence blocks 98/7b, 98/8a and 98/12 (northern part), holds a 35% interest through its wholly-owned subsidiary Wessex Hydrocarbons Limited. Its partner, NWE Mirrabooka (UK) Pty. Ltd (a wholly-owned subsidiary of ASX listed, Norwest Energy NL) has a 65% interest.

Subject to completion of licence documentation, the award will allow HALO and NWE to explore the blocks for an initial period of two years, during which existing 3D seismic data will be reprocessed to pre-stack depth migration. At the end of this initial period, the group must either commit to drill a well in the remaining two years of the licence or relinquish it in full.