Gov’t agrees deal to end oil block dispute

Clontarf Energy PLC and Petrel Resources PLC have said that an agreement with the Government of Ghana has been reached during legal proceedings related to their Tano 2A exploration licence in the country.

The two oil and gas exploration and development companies said they have secured a deal which means that they will be provided new land next to their current acreage to replace lost land when a rival rights application by CAMAC Energy Inc overlapped their own licence.

The company said that all parties involved in the deal seek to expedite the ratification process which requires Cabinet and Parliamentary approval in Ghana, and both Petrel and Clontarf have now ended High Court proceedings.

In April, Petrel Resources and Clontarf Energy PLC were granted an injunction in the High Court of Ghana protecting their rights to the exploration block in shallow water offshore Ghana.

They sought the injunction after discovering that a rival rights application by the US's CAMAC Energy had been ratified, which overlapped with a portion of the rights the two companies believe they have on the block.

Clontarf has a 60% interest in the block and Petrel a 30% interest.

In May, Petrel's Managing Director David Horgan stepped aside from his role to focus on bringing the company's Ghanaian dispute to a successful conclusion.