Devon/EnCana To Invest $56 Million Offshore Ghanna

Devon Energy Corp. and EnCana Corp. have inked a deal to invest $56 million to explore offshore Ghana. "We need to diversify our economy from gold, cocoa and timber exports," Energy Minister Albert Kan-Dapaah said in a statement. "If we can do that by striking oil, which we have reason to believe is available, we should go full steam ahead."

The two independents are jointly investing $56 million in an agreement with the Ghana National Petroleum Corp to explore for oil and gas offshore southeastern Ghana in the Keta Basin. Earlier exploration shows offshore Ghana have been found to be commercially unviable. The only production is from is the Saltpond offshore field, which started up recently after being idle for years and pumps only about 1,000 barrels per day (bpd) of oil.

Final approval from the government is expected shortly for the $50 million development and production of the offshore Tano Basin field, off the west coast of Ghana by Tano Energy. Vanco Energy Company will invest $40 million in deep water exploration off Cape Three Points and the Tano Basin. This project is expected to receive final approval in August. Alderney Resources will explore for oil and gas in the central Saltpond basin and Dana Petroleum has plans to drill a second well in the Tano Basin in August.

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&to=http://www.devonenergy.com' target=_blank>Devon Energy

&to=http://www.encana.com' target=_blank>EnCana