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WEST CAPE THREE POINTS BLOCK 2

OPERATOR:  Springfield E&P Limited – New Discoveries (84%); Existing Discoveries (82%) interest in block 

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OTHER CONTRACTING PARTIES:

  1. Ghana National Petroleum Corporation (GNPC) – New Discoveries (11%); Existing Discoveries(8%) interest in block

  2. GNPC Exploration and Production Company Limited (GNPC EXPLORCO) – New Discoveries (5%); Existing Discoveries (10%)

 

Original Contract Area Size: 673 sq.km

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Effective Date: July 26, 2016

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Exploration Period:  5½ years

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Current Exploration Phase: Initial Exploration Period (2½ years) [ July 26, 2016 –   January 25, 2019]

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Extension (s): + 1½ years [ January 26, 2019 – July 25, 2020]

Springfield E&P Limited    - New Discoveries (84%); Existing Discoveries (82%)

Minimum Initial Exploration Programme

Existing Discoveries

Contractor shall within a period of nine (9) months from the Effective Date undertake an evaluation of the Existing Discoveries, and shall submit an Appraisal Programme to the Petroleum Commission for approval and to the Minister for information purposes.

Initial Exploration Period (2½ years)

  • Geological and geophysical studies.

  • Drill one Exploration Well.

  • Minimum Expenditure: US$30,000,000.

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Status of Operations

  • Evaluation of existing datasets (seismic, wells etc.) towards appraising the existing discoveries (Banda and Odum) and the newly mapped prospects in Cenomanian, Turonian and Campanian to understand the prospectivity of the block.

  • Contractor acquired new 3D data (~883 sq. km) over the block and processing is underway

The Petroleum Commission has granted Contractor eighteen (18) months extension to the Initial Exploration Period to allow for completion of exploratory work obligation. Contractor was further granted an extension to the nine (9) months within the Initial Exploration Period to submit Appraisal Programmes for the Odum and Banda discoveries.

 

FISCAL TERMS

Royalty: Twelve and one-half percent (12.5%) in the case of a New Discovery and ten percent (10%) for Existing Discoveries of the Gross Production of Crude Oil shall be delivered to the State as Royalty, pursuant to the provisions of the Petroleum Law.

 

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.

 

Withholding Tax: Withholding tax at the rate of eight percent (8%) shall be deducted from dividends paid to shareholders.

 

Surface Rental

Additional Oil Entitlement: Refer to the Petroleum Agreement.

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