Azonto Petroleum ends March quarter with healthy cash balance
(ASX:APY LON:AZO) is focused on lowering costs and securing solid financial backing for its key CI-202 block offshore Ivory Coast which could include selling the asset it said.
Running through the latest quarter the firm conducting a strategic review repeated that it expects the full scope and schedule for the power project using the Gazelle field's output will be agreed by the end of May.
This will coincide with the formal approval of the power project by the Ministry of Environment and Sustainable Energy (which is a due by mid-May).
For the Gazelle development however there is expected to be a delay to project sanctioning as the Vioco Petroleum joint venture company has decided to re-launch a tendering process after one contractor proposed a lump sum price for the project that was higher than expected.
"Azonto and its partner Vitol have also continued to mature the Hippo North prospect which is located 7km from Gazelle in shallow water of 70m" said managing director Grégory Stoupnitzky.
"Hippo North is now ranking high in the CI-202 exploration portfolio to deliver potential additional gas resources to complement the Gazelle Field."
There may be synergies in combining a Hippo exploration well with the Gazelle drilling campaign which would significantly reduce the cost of the exploration well the MD also noted.
A final decision on the drilling of Hippo North will need to be made by October 7 this year subject to budgetary approval it added.
The firm ended the March quarter with around A$5.07mln in cash.
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