PETROLEUM REGISTER
SOUTH DEEPWATER TANO
OPERATOR: AGM PETROLEUM GHANA LIMITED – (80%) interest in block
OTHER CONTRACTING PARTIES:
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Ghana National Petroleum Corporation – 15% interest in block
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Quad – 5% interest in block
Contract Area Size: 3,482 sq.km
Effective Date: January 24, 2014
Exploration Period: 7 years
Current Phase of Operations: Initial Exploration Period (31/2 years): [ Jan. 24, 2014 – July 23, 2017]
Extension (s): + 3 years [ July 24, 2017 to July 23, 2020]
Minimum Initial Exploration Programme
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Acquire, process and interpret 750sqkm of 3D seismic data relating to the contract area
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Drill a minimum of two (2) exploration wells
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Minimum Expenditure Obligation: US$259,000,000
Status of Operations
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Prospectivity Mapping: Several Leads and Prospects have been identified using existing seismic data.
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Seismic Acquisition: AGM has proposed the acquisition of 1000 sq.km 3D seismic data instead of the initial obligatory 750sq. km stipulated in the work programme of the PA. The tendering process for the acquisition is yet to start. The Contractor has cited the ITLO Provisional Measures as cause for the delay.
FISCAL TERMS
Royalty: Ten percent (10%) 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 six percent (5%) for the Natural Gas.
Income Tax: Petroleum Income tax in accordance with the provisions of the Income Tax Act levied at the rate of thirty-five percent (35%) for the term of this Agreement, subject to applicable law in effect from time to time.
Surface Rental
Additional Oil Entitlement: Refer to the Petroleum Agreement.