December 18, 2017 / 7:25 AM / 6 months ago

BRIEF-African Petroleum provides update on Senegal licenses

Dec 18 (Reuters) - African Petroleum Corporation Ltd :

* ‍AS PREVIOUSLY ANNOUNCED ON 16 OCTOBER 2017, TERM OF CURRENT FIRST RENEWAL PHASE OF SENEGAL OFFSHORE SUD PROFOND (“SOSP”) PRODUCTION SHARING CONTRACT (“PSC”) EXPIRED ON 15 DECEMBER 2017​

* ‍PRIOR TO EXPIRY OF CURRENT PHASE, AND IN ACCORDANCE WITH TERMS OF PSC, COMPANY LODGED AN APPLICATION (“PSC APPLICATION”) TO ENTER INTO SECOND RENEWAL PHASE OF CONTRACT​

* ‍BOTH PRIOR TO AND AFTER LODGEMENT OF PSC APPLICATION, COMPANY HELD SEVERAL MEETINGS WITH RELEVANT AUTHORITIES IN SENEGAL TO DISCUSS COMPANY’S PSC APPLICATION​

* ‍ALL OF THESE MEETINGS LED COMPANY TO BELIEVE THAT PSC APPLICATION WOULD BE FAVOURABLY CONSIDERED PRIOR TO EXPIRY OF CURRENT PHASE​

* ‍COMPANY HAS RECEIVED NO FORMAL RESPONSE TO PSC APPLICATION​

* AFRICAN PETROLEUM - ‍AT A RECENT MEETING WITH NEWLY APPOINTED MINISTER OF ENERGY, COMPANY WAS ADVISED THAT ALL DECISIONS PERTAINING TO AMENDMENTS TO PSC’S HELD BY ALL COMPANIES IN COUNTRY ARE BEING DEFERRED UNTIL NEW PETROLEUM CODE IS ISSUED, WHICH IS EXPECTED TO BE IN Q2 2018​

* ‍IN ADDITION, COMPANY NOTES RECENT MEDIA REPORTS STATING THAT MINISTRY OF ENERGY HAS OUTLINED A CHANGE OF POLICY THAT ONLY MAJOR COMPANIES WILL BE CONSIDERED FOR NEW PSCS IN SENEGAL GOING FORWARD​

* ‍SUCH A POLICY HAS CLEAR NEGATIVE IMPLICATIONS FOR SMALLER EXPLORATION LED COMPANIES​

* AFRICAN PETROLEUM CORPORATION - ‍COMPANY IS DISAPPOINTED AND FRUSTRATED WITH THIS LATEST DEVELOPMENT AND IS REVIEWING ITS OPTIONS UNDER PSC IN ORDER TO PROTECT ITS CONTRACTUAL RIGHTS AND TO EXPEDIATE DECISION MAKING PROCESS​

* ‍A FURTHER UPDATE WILL BE PROVIDED TO SHAREHOLDERS ONCE COMPANY HAS RECEIVED AND CONSIDERED RELEVANT LEGAL ADVICE ON ISSUES​ Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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