Copper Range moves into African oil

Explorer Copper Range has outlined a move into the African energy sector after signing an agreement that could see it acquire up to an 80 per cent interest in the Bezaha oil project in Madagascar.

The West Perth-based company has structured the agreement to allow it to earn a staged interest in the project, starting with an initial payment for a 25 per cent share.

“Subject to successful completion of work programmes, expenditure commitments and further payments the company can earn an interest of up to 80 per cent,” Copper Range said in a statement.

The company said the concession is an approximate 10,160 square kilometre block in southern Madagascar’s Morondava basin.

Copper Range will acquire the first 25 per cent interest through a payment of U$2.75 million and 50 million shares in the company to the vendor.

A further 26 per cent of the project can be acquired if Copper Range spends up to US$5 million on an initial exploration program over a 24-month period.

Copper Range can acquire an additional 19 per cent interest in the project by spending up to $9 million on a second exploration phase.

The company would then pay the vendor US$20 million in cash and shares once hydrocarbon reserves of at least 100 million barrels of oil have been determined at the project to lift its interest to 80 per cent.

Copper Range’s acquisition of the Bezaha project adds to its existing copper assets in South Australia and its phosphate assets in the Northern Territory.