The proposed acquisition is made on the basis that the Pikka Unit and adjacent acreage and 37.5 percent in the Horseshoe Block contains a discovered resource of 500 million barrels, compared to an estimate of 1.2 billion barrels by the existing joint venture partners.
The proposed acquisition is worth US$400 million (K1.2 billion), with the option for OSL to double its interests by mid-2019 for an additional US$450 million (K1.4 billion).
Meanwhile, OSL takes over operatorship in the first quarter of 2018 and will undertake active appraisal.