Under the terms of the agreement, Oilex will acquire a further 30% interest in the permit (taking its total interest to 50%) by funding an additional 60% of the Donga-3 well’s drilling costs.

Bow will pay 20% of the costs while retaining a 50% working interest in the permit and the well.

Donga-3 is a 1590m-deep test of a four-way closed structure with Jurassic and Triassic sandstone targets.

The well has been sited to intersect the primary Triassic sandstones, an interpreted 25m updip from Donga-1 and an interpreted 13m updip from Donga-2, which recovered light sweet crude oil and water when drilled in the 1960s and 1970s.

It will be drilled next month following drilling activities at the Pinnacle West prospect in the adjoining ATP 608P Remainder Block.