Irish explorers Clontarf Energy and Petrel Resources are confident of finally reaching a lasting agreement with Ghana’s government over the replacement of lost acreage in the west African country before the end of this year.
In 2014 the sister companies — both chaired by John Teeling – had reached agreement for land compensation, after a rival US/Nigerian company (Erin Energy, formerly known as CAMAC Energy) was wrongly awarded part of their existing Tano 2A onshore block, but that was never formally approved by Ghana’s authorities.
The saga has been ongoing for nine years, but Ghana’s pro-business party is back in power and Clontarf and Petrel have reopened talks over a solution.
David Horgan, a chief director of both firms, said those discussions are constructive with both sides seeking a positive solution. He added there is “no reason” why a solution cannot be found by the end of this year. Following that, Clontarf and Petrel will likely seek development partners for the prospect.
Clontarf — which was awarded new undrilled acreage offshore Equatorial Guinea earlier this week — saw its share price dip by 9% yesterday, while Petrel’s was up marginally. The latter is currently down 34% in the year to date, with Clontarf ahead 30% since the beginning of January.
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