Fusion Oil and Gas NL has signed an exclusive Letter of Intent with Amerada Hess whereby, subject to the legal verification, completion of mutually acceptable documentation and agreement of the respective Government Ministries, Hess will acquire interests in Fusion's Gambia PPL, Croix du Sud (AGC – the Senegal and Guinea Bissau joint authority which administers the shared maritime border zone) and Ntem (Cameroon) deepwater exploration licenses.
The transaction is expected to be finalized within sixty days, however both parties have decided to proceed imminently with the issuing of tender documents in relation to the acquisition of 3D seismic surveys in each of the licenses. Accordingly Fusion has elected to make a preliminary announcement to enable contractual arrangements in relation to the 3D seismic to be completed in anticipation of commencing acquisition as soon as possible after final agreements are reached.
It is envisaged in the Letter of Intent that Fusion will retain a twenty percent stake in each license and will be fully carried through an exploration program, the details of which will be released after final agreements are reached.
Alan Stein, Managing Director of Fusion, commented: "We are delighted to have an opportunity to establish a strategic alliance with Amerada Hess. In Equatorial Guinea, Hess brought the Ceiba Field on-stream in fourteen months and since, has made five successive new oilfield discoveries. Accordingly we believe that Hess will bring significant technical experience to the joint ventures in The Gambia, AGC and Cameroon."