Canadian Overseas Petroleum (CVE:XOP, LON:COPL) revealed that the ExxonMobil (NYSE:XOM) operated well off the coast of Liberia has been confirmed in the American major’s budget for 2016.
The well, Mesurado-1, which had previously been delayed amid last year’s Ebola crisis in West Africa, is scheduled for late 2016 to early 2017.
Mesurado’s primary goal is to prove commercial volumes of hydrocarbons. It will be in a deep-water location and will target Cretaceous Santonian-age reservoirs.
Exxon budgets the exploration at a cost of US$120mln, though COPL’s 17% interest in the project is ‘carried’ by the American group.
Arthur Millholland, COPL’s chief executive, said: "This is a positive first step in proceeding with the drilling of the Mesurado-1 well, subject to overcoming the remaining logistical issues related to the need for participation from third party contractors.
“While the delay to the exploration programme has been frustrating for COPL and its shareholders, we are pleased to now have a timetable to work towards exploring this highly prospective acreage."
COPL added that the exact timing of the drill programme will be dependent on the availability of suitable rigs as well as the capability of third party contractors to operate in country.