In 2013, Total acquired 30% interest from JOG in the Valley license, with the condition that if Total decides not to drill, JOG will be renumerated for the loss of potential opportunity.
In 2014, after the farm-in with Noreco, Total owned 35% stakes in the license, targeting nine “modest-sized” prospects previously identified. It turned out that these have been estimated on poor-quality seismic data and only two out on nine had potential, with combined recoverable resource of less than 8 MMboe.
This led to Total’s decision of not drilling any exploration wells, making room for the compensation agreement to kick in. The farm-out conclusion came in 2015.