Reconnaissance Energy (Africa) Ltd V.RECO

LICENSE PEL073 Exploration Program and Expenditures

[Flintstone60]

From discord:
LICENSE PEL073 Exploration Program and Expenditures
I have now read through the exploration contract on PEL073 and tried to understand important passages.
 
To read in detail: LICENSE PEL073 (SEE DOCUMENT SEDAR 7/28/2020: MATERIAL DOCUMENT(S) 21,382 MB )
- 28.7.2020 license PEL073 extended
- initial period of four years
- Possibility of extension for 2 years 2.5
 
The respective interest of the two companies in and under the exploration license will be as follows:
2.5.1 RECONNAISSANCE ENERGY 90%
2.5.2 NAMCOR 10%
 
 
In brief:
- NAMCOR has a 10% working interest in the PEL073 exploration license
- ReconAfrica commits to carry out various exploration activities
- NAMCOR is not required to contribute to exploration expenditures
- Once a discovery is made by ReconAfrica, the company must:
+ Immediately inform the government representative
+ immediately initiate testing to determine the amount of petroleum
+ submit to the Commissioner (-> Maggie Shino), within 60 days of the completion of such tests, a report containing the results of the tests and an assessment of the potential commercial interest of such discovery.
 
- Re: production license:
If the Company intends to apply for a production license for the subject reservoir block under section 43(1) of the Petroleum Act, the Company shall schedule a meeting with the Commissioner. 9.5 The Minister shall, subject to the provisions of sections 25 and 47 of the Petroleum Act and upon approval of the Development Plan, within six months of the submission of the application for a production license under section 9.3, grant and issue such license for a period of 25 years.
 
- Roaylties
13.1 Subject to the provisions of the Petroleum Act, the Company shall pay
(a) Quarterly on or before the last day of each Calendar Month following each Quarter, for the benefit of the State Revenue Fund, a royalty of 5 per cent on the market value of Petroleum Produced and Saved in the Production Area during each Quarter, determined-(i)(ii)
in the case of Crude Oil, in accordance with the terms of
clause 15; and
in the case of Natural Gas, in accordance with the terms of
clause 16.7;
 
- Publication of data by the Government:
(a) Upon completion of a well by the Company in the License Area, publish the following summary information:
+ Location of the well (coordinates of the well, block number, and the name of the sedimentary basin);
+ total depth of the borehole in meters;
+ Total stratigraphic depth of the well, identified by epoch (Jurassic, Cretaceous, etc.);
+ Discovery of hydrocarbons, oil and/or gas or not (in case of - discovery, neither the depth nor the stratigraphy of the producing formation is indicated);
+ Number of tests performed, including the type of tests;
+ maximum flow rate during testing, including the size of the choke;
+ hydrocarbon types tested, including gas-to-oil ratio;
+ water depth;
+ general comments on further exploration in the basin, etc.
 
-> I think with this we can see a bit clearer.

[SprengoM]

Quality information! Thanks for sharing

[headtotoeinthe6]

Yabba dabba doo! Thanks Flinstone60.