The discovery made by African Petroleum may turn out to be the most significant discovery in the West African Transform margin in the last three years, and the company is keen on getting ahead with appraisal, possible field development and monetization of the asset. But the company is cash strapped. After carrying the entire cost of drilling three wells in deepwater Liberia (Block LB-09), AP is desperate for a financing partner to share costs of the appraisal and development.
AP made the first commercial discovery by any company offshore Liberia in February 2012. Narina-1 encountered 21 metres of net oil pay in the Turonian (38 degree API) and 11 metres of net oil pay in the Albian (44 degree API) with no oil water contacts. In February 2013, AP announced another discovery at Bee Eater-1. Oil bearing Turonian sandstone was found, but the company admits that reservoir permeabilities over the hydrocarbon bearing section of the well were lower than anticipated.
In its latest report, AP stated that it had initiated a farm-out process in February 2013 after discussions with targeted companies that had expressed an interest in the Company's portfolio. The Company claims significant progress on prospect maturation has been made and it is hopeful that it will be able to farm down part of its high equity positions during the remainder of 2013.
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