Under the agreement, Otto will fund 25% of the initial test well in the ST 224 lease to gain a 25% working interest in the ST 224 lease.
The ST 224 comprises a high CGR, gas condensate exploration prospect located in the prolific Bul.1 trend at a water depth of approximately 170ft. The lease is scheduled to be drilled in the fourth quarter of 2017.
The licence is currently owned by W&T Offshore (39%, operator), Houston Energy (36%), and Other Private US Company (25%).
Idemitsu Kosan Co Ltd intends to raise $1.23bn through the issue of 33.6 million shares in a public offering.
Proceeds from the offering are intended to be used by the company to fund Nghi Son Refinery and Petrochemical LLC, acquisition of plant and equipment, research and development in advanced technology areas, and for the repayment of short-term loan.
The company will acquire 30% participating interests in Blocks 2112A, 2012B and 2113B of Namibia Petroleum Exploration Licence 0037.
Tullow operates the licence, currentling holds a 65% participating interest. Other licence partners include Pancontinental Namibia (Pty) Limited (30% participating interest), and Paragon Oil and Gas (Pty) Limited (5%).