Australia-listed Armour Energy is restarting its 2D seismic programme in Uganda, two years after declaring force majeure.
The company initially announced a stoppage in October 2019 as a result of flooding and storms on its Kanywataba contract area. The block covers 344 square km.
In early 2020, COVID-19 disrupted supply chains and international travel. This prevented Armour from continuing seismic in April 2020.
Now, it has informed the Ugandan Ministry of Energy & Mineral Development that it will restart work.
Armour expects the government to add the time under force majeure to its contract. The licence had been due to end on September 13 this year. Owing to the force majeure declarations, the licence will now run to 2022 or 2023, it said.
Uganda awarded the licence to Armour in September 2017. The government provided a two year renewal in September 2019.
Armour has contracted Teclab to carry out the 2D seismic work. This should take around three months to complete, ahead of the wet season. It will provide 100 line km of infill 2D seismic.
“We see great potential for profitable exploration at Kanywataba, and are very pleased that circumstances now allow us to recommence our activities there,” Armour’s CEO Brad Lingo said.
Armour has a 16.12% stake in the project. Another Australian company, DGR Global, has 83.18%, held via an equity stake.
The company has talked in the past of structural stratigraphic traps on the licence, on trend with CNOOC Ltd’s Kingfisher oilfield. It has reported seeps on Kanywataba.