Ophir Energy (LON:OPHR) is to explore oil prospects in the waters off the Seychelles, in the Indian Ocean.
It has agreed a deal with WHL Energy to acquire a 75% stake in two blocks. Ophir will pay back-costs of US$4mln and fund a 3D seismic programme. If Ophir chooses to retain its interests in the blocks beyond mid-2015 it said it will also pay for more work in the next exploration phase.
Ophir says the deal secures a substantial, operated footprint in an oil-prone frontier basin. Some prospects have already been identified, and these are found in water depths of less than 75 metres.
"Ophir's preferred exploration model is to secure large operated positions, with significant running room, in frontier basins where the fundamental elements of a hydrocarbon system are in evidence,” said chief executive Nick Cooper.
“We are therefore pleased to have executed this material new basin entry into the offshore East Africa area.
“Our initial analysis already highlights a portfolio of structural prospects and leads and we look forward to pursuing an active exploration programme in the area to test this thesis."