The deal will give the company a 40% stake in the SEAL-T 330, 430 and 438 blocks in the onshore Sergipe-Alagos Basin that include a Petrobras discovery and a 50% interest in Block 133 in the Sao Francisco basin.
The SEAL-T-330 block contains the PTA-3 discovery well drilled by Petrobras in 1960. Swab tests at a depth of about 550m had recovered 28 degree API oil with good shows reported over a 104m interval.
Gavea plans to re-enter the well and evaluate whether it can be re-completed and tested. ERH added a twin well may be required to test the discovery.
The other two blocks in the Sergipe-Alagos Basin are close to several producing blocks and Gavea has used 3D seismic data it bought from Petrobras to identify a prospect similar to the Angelim field.
Block 133 covers 2957 square kilometres and is near Block 94, which ERH farmed into earlier this year.
Gavea has completed surface mapping and aerial photo geologic interpretation.
ERH will fund 100% of the cost of drilling the first well on each of the three Sergipe-Alagos Basin blocks, and fund appraisal and development drilling up to a capped amount. It will acquire the Sao Francisco block by funding 75% of the initial exploration program.
The company plans to raise additional capital to fund the farm-in.
ERH had in February acquired a 50% interest in five exploration blocks in the Reconcavo Basin, northeast Brazil, from Brazilian independent Silver Marlin.
