Phase one of the project to span four years is estimated at 31 million US dollars.

The government of Cameroon via the National Hydrocarbons Corporation (NHC) and the Dana Petroleum Plc has resolved to explore oil on the Bakassi West Block situated in the Rio Del Rey Basin covering a surface area of 387.53 square kilometers. The two parties signed a Production Sharing Contract (PSC) in Yaounde yesterday June 14, 2012 at the NHC headquarters under the chair of the Minister of Mines, Industries and Technological Development, Emmanuel Bonde. The Executive General Manager of NHC, Adolphe Moudiki signed for Cameroon while the Resident General Manager of Dana Petroleum Cameroon Limited/Madison Cameroon Oil and Gas Limited/SoftRock Oil and Gas Limited, John William Downey signed for the consortium.

Pursuant to the contract, Dana Petroleum Limited will undertake an exploration work programme on the Bakassi acreage for the first period of four years. This will comprise the acquisition, processing and interpretation of 250 kilometers of two dimension seismic data, and the drilling of two exploration wells of which one is firm and the other contingent on the result of the latter. This first phase is estimated at 31 million US dollars (about FCFA 15,000 billion).

The contract states that depending on the results obtained during the first period, the programme could be extended to two other supplementary periods of two years each, which include the acquisition and processing of 100 kilometers of two dimension seismic data and the drilling of at least one exploration well per period. This will total a minimum investment corresponding to three periods of eight years duration and will amount to 71 million US dollars (about FCFA 36.8 billion).

However, this is the 18^th contract signed within the framework of the application of the Law N° 99/013 of December 22, 1999 on the Petroleum Code. The signing of the contract under the watchful eyes of the High Commissioners of Canada and Great Britain to Cameroon was described as the first in petroleum contract to be signed in the Bakassi area. The duration for the penning of signatures, (over three hours) was proof of the importance of the contract. One which is expected to bring a glimmer of hope to the petroleum and oil sector in the country.