OFFSHORE CAPE THREE POINTS SOUTH
OPERATOR: UB Resources Limited – 70.47% Working interest in block
OTHER CONTRACTING PARTIES:
Royalgate Gh Limited – 4.35% interest in block
Houston Drilling Management Gh Limited –12.18% interest in block
Ghana National Petroleum Corporation (GNPC) – 13% interest in block
Original Contract Area Size: 755 sq.km
Effective Date of Petroleum Agreement: September 17, 2014
Exploration Period: 7 years
Current Phase of Operations: Initial Exploration Period (3years): [ Sep. 17, 2014 – Sept. 16, 2017]
Extension (s): + 1 year [ Sept. 17, 2017 to Sept. 16, 2018]
Minimum Initial Exploration Programme
License and reprocess existing 600sqkm of 3D seismic data relating to the contract area
If deemed necessary by the Contractor as a result of reprocessing of seismic data within the Contract Area, the Contractor may acquire and reprocess new seismic data
Drill one (1) exploration well
Minimum Expenditure Obligation: US$80,000,000
Status of Operations
The Contractor has not fulfilled any of the minimum work obligation to date.
An extension of one (1) year was granted by the then Minister of Petroleum in August 2016 to enable the Contractor to complete of all outstanding obligations.
Royalty: Twelve and one half percent (12.5%) of the Gross Production of Crude Oil shall be delivered to the State as Royalty.
The Royalty to be delivered to the State on Natural Gas shall be at the rate of five percent (5%) for the Natural Gas destined to the domestic market and ten percent (10%) for Natural Gas to be exported as LNG.
Income Tax: In accordance with the provisions of the Income Tax law, petroleum income tax shall be levied at thirty five percent (35%).
Withholding Tax: Contractor shall not be obliged to withhold any amount in respect of tax from any sum due from Contractor to any Subcontractor in respect of work and services for or in connection with this Agreement.
Additional Oil Entitlement: Refer to the Petroleum Agreement.