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German company farms into Guyana offshore exploration block

HAMBURG, Germany – The German company, RWE Dea, has a deal with Repsol Exploración Guyana to farm-in to the Kanuku license operated by Repsol in the Guyana-Suriname basin offshore Guyana. By entering the South American country, RWE Dea further expands its upstream position along the northeastern coast of South America.

Under the farm-in agreement, RWE Dea will acquire a 30% share in the Kanuku license. After regulatory approvals, the Kanuku block will be explored by a consortium formed by Repsol (40%, operator), RWE Dea (30%), and Tullow Oil (30%). The transaction remains subject to the approval of the government of the Republic of Guyana.

The license is in the prospective Guyana-Suriname basin, 80 km (50 mi) off the northeastern coast of South America and covering an area of 6,525 sq km (2,519 sq mi). Kanuku represents Cretaceous strata in water depths ranging from shallow shelf to 200 m (656 ft).

The acquisition of 2D and 3D seismic data was completed in December. After processing, the seismic data will be interpreted together with already existing 3D data, with the objective of identifying drillable prospects by the end of 2014.

“This new project in partnership with Repsol and Tullow Oil is another showcase of our strategy of early entry in frontier and emerging basins with volume play potential,” said Hans-Hermann Ecke, Senior Vice President New Ventures of RWE Dea AG. “The results of the past exploration activities of our partners show promising signs of hydrocarbons being present in the licence area, and we look forward to the results of the 2D and 3D seismic acquisition campaign currently underway,” Ecke continued.

The acquisition of 2D and 3D seismic data covering 860 line kilometres and area of approximately 3,200 square kilometres, respectively, was successfully completed in December. After processing the seismic data will be interpreted together with already existing 3D data with the objective of identifying drillable prospects by the end of 2014. Based on the findings, a decision will then be taken whether to enter a second exploration phase during which an exploration well would be due to commence.

The Equatorial Margin of South America is of strategic importance for RWE Dea and is one of the future core regions of the company. RWE Dea is already present in the region through its farm-in to Block 52 mid-year in the neighbouring state of Suriname, where together with its partner PETRONAS a 3D seismic survey has been successfully completed in November.