The Board of Directors of Sapura Energy Berhad (“Sapura Energy” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Sapura Exploration and Production Sdn Bhd (“Sapura”), together with its joint venture partners DEA Deutsche Erdoel Mexico ("DEA") and Premier Oil Plc ("Premier") have been awarded Block 30 in Sureste Basin, a proven and prolific hydrocarbon province in the Gulf of Mexico.

Block 30, which is located in shallow waters at about 70 metres, directly to the south west of Premier's world-class Zama discovery and to the north of the Amoca oil field, was the most contested block in the bid. The consortium outbid six other bidders for the block.

The consortium has identified material leads and prospects on Block 30 in the tertiary clastic plays, typical of the Sureste Basin and in which Premier made the world-class Zama discovery in July 2017.  The main prospect exhibits DHIs (direct hydrocarbon indicators) on the existing 3D seismic across the southern edge of Block 30, significantly de-risking a potentially material oil play there. These anomalies are similar to those seen at the Zama and Amoca oil fields. The plan is to acquire a 3D seismic in 2019 ahead of firming up drilling locations in 2020.

Sapura E&P entered into the bidding agreement with DEA and Premier based on a equity split of DEA 40 per cent, Sapura Energy 30 per cent and Premier 30 per cent.

 

FINANCIAL EFFECTS

The Contract announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Sapura Energy Group for the financial year ending 31 January 2019 and the financial periods thereafter within the duration of the Contract.

RISK FACTORS

Risk factors affecting the Contract including execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions. Notwithstanding, the Company has established a successful track record undertaking similar projects. 

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of the Company and/or persons connected with them have any direct or indirect interest in the award of the Contract herein.

DIRECTORS’ STATEMENT

The Board is of the opinion that the acceptance of the Contract is in the best interest of the Company.

The announcement is dated 29 March 2018.