Genel Energy PLC (LSE:GENL, OTC:GEGYY) told investors that a petroleum agreement and association contract has now been signed for the Lagzira block, in Morocco.
The contract, issued by Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), sets out an eight-year exploration term which is split into three phases. Genel in a statement described the fiscal terms of the contract as “attractive”.
It now seeks to joint venture the exploration project.
“Genel has launched a process to find a partner to take a material equity position and jointly pursue the exploration programme in the block, with the opportunity to drill and test one of the high-graded prospects,” the London-listed oil firm said.
The Lagzira block (formerly known as Sidi Moussa) is a large offshore licence that hosts a proven petroleum system (demonstrated by a 2014 Genel well which recovered oil) and it is presently seen to have 18 identified exploration prospects, for a total estimated prospectivity of some 2.5bn barrels.
Each exploration prospect has been estimated between 100 and 700 barrels.