(MENAFN - ProactiveInvestors - Australia) WHL Energy (ASX: WHN) has ratified the amended Petroleum Agreement with PetroSeychelles and the Seychelles Government, reducing the number of wells it is required to drill to one from the original two wells.
"The amendments will provide WHL Energy with greater flexibility to advance our technical work on the acreage and prepare for the introduction of industry partners and drilling," WHL managing director Steve Noske said.
"What is particularly pleasing is the support we received from the Seychelles Government and PetroSeychelles to the amendments we proposed and their recognition of the significant amount of work WHL Energy has undertaken since it acquired its Seychelles interests just over two years ago."
Besides the reduction in the well commitment, the amended Petroleum Agreement also includes:
- A six month extension until 31 January 2014 to the commitment programme in Exploration Period 2;
- A commitment to acquire an additional 2000 kilometres of 2D seismic, reprocess 2000 kilometres of historic 2D seismic and to undertake certain geophysical and environmental studies in Exploration Period 2; and
- Relinquishment of noncore outlier exploration acreage (Farquahar, Platte, Coetivy & Fortune Banks) allowing the Company to fully explore the shelf acreage it has identified as being most prospective. Further relinquishment is not required until 6 months after completion of the first exploration well.
Noske added that WHL was well advanced with plans to participate in the 2013 Seychelles Open Acreage Bid Round.
"Importantly, the increased focus on the Seychelles generated by the Open Acreage Bid Round is expected to lead to further interest in our own farmout programme," he added.
PetroSeychelles chief executive officer Eddy Belle said there had been renewed interest in the Seychelles from the international oil and gas industry and that preparations for the open bid round were well advanced.