Agri Energy (ASX: AAE) is finalising and implementing the detailed terms of the Exploration Production Sharing Agreement for its Sudan onshore oil and gas block.
This includes negotiating the terms of Joint Operating Agreement with its partners Express Petroleum and Sudapet and establishing the Block 14 Joint Operating Company.
As part of this process, Statesman Africa (SAL) is advancing negotiations over the terms of the US$5 million security bond to be posted on Block 14.
SAL, which Agri is acquiring a 49.9% stake in, is working with the Sudanese Ministry of Petroleum to extend the date for posting of the security bond, beyond the initial payment date.
SAL holds a 75% working interest in the 100,000 square kilometre block.
Previous exploration had indicated that an effective system could be present in Block 14 while an exploration well in the Block 12A, immediately to the south, has encountered hydrocarbon shows.
Block 14 is situated in the remote and un-inhabited north western corner of Sudan, directly adjacent the border with Egypt and Libya.
Agri is changing its name to Sirocco Energy.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.