On 11 March 2019, United Oil & Gas PLC (United) announced that it had signed an option agreement with Elephant Oil Ltd (Elephant) to farm into Block B, potentially taking a 20% interest in the production sharing agreement.   The Block B licence data is limited to a single seismic line and a CGG-acquired airborne Falcon Gravity Gradiometer survey.Â  This data suggests the presence of numerous large structures in the licence, with the potential to hold >200MMbbls. The Allada structure has already been identified by Elephant Oil as a prospect.   Under the farm in option agreement, United have agreed to fund passive seismic and field studies up to a value of USD 175 thousand.Â  The completion of the passive seismic programme is being targeted for April.Â  The goal is to calibrate the depth to basement and obtain further information on the oil and gas seeps.Â  This will further de-risk maturity and migration in the area ahead of the completion of a final decision to exercise the farm in option.  If United chooses to exercise the option, then the company will farm into the PSC for a 20% interest and will be responsible to fund 30% of the non-drilling and 20% of the drilling costs in the Phase 1 work programme as approved under the PSC.Â  United would also pay Elephant the sum of US$260,000, representing one quarter of the pro rata (20%) past costs expended by Elephant on the prospect, with the remaining US$780,000 paid in three equal six-monthly instalments.  Block B covers an area of 4,590 sq km. The acreage is undrilled. Participants are Elephant, operator with a 90% interest and SociÃ©tÃ© BÃ©ninoise des Hydrocarbures (Sobeh), the Benin state oil company, with a 10% interest (carried through exploration).
United Oil & Gas has signed an option agreement with Elephant Oil to acquire a 20% stake in the block B PSC, (4590kmÂ²) undrilled on the Dahomey Embayment, west of Cotonou. The block contains one prospect (Allada).