Genel Energy has announced that after a review of license potential, it has decided to exit its 44% working interest in the Adigala block onshore Ethiopia.
According to Genel Energy the Adigala block which lies close to Somaliland, and was thought to be geologically analogous to the prolific producing Jurassic Rift Basins of Yemen.
The explorer had earlier announced that a drill or drop decision would be reached in the first quarter of 2016 as it continued further processing and interpretation of new 2D seismic acquired in 2014.
The seismic that commenced in the second quarter of 2014 was to refine a number of existing leads into drill ready prospects and de-risk the prospectivity of the license.
It is exactly clear how much the relinquishment of this block will cost the company although Genel reports an exploration expense of $173 million will be recorded in the 2015 accounts relating to the relinquishment of interests in the Ber Bahr, Dohuk, CI-508 (Côte d’Ivoire), Adigala (Ethiopia) and Mir Left (Morocco) licences.
Other joint venture partners include the operator New Age and Africa Oil with 10 percent working interest.