Australia-based emerging oil and gas company WHL Energy has successfully renegotiated its Seychelles exploration program with the government of Seychelles following the results of the company’s three initiatives.

The company has successfully completed the re-evaluation of the geological and technical review of its 100% owned Seychelles exploration acreage and confirmed the presence of high grade oil in the prospect.

WHL re-interpreted the Seychelles acreage in order to confirm the petroleum potential of the project and also to develop a better understanding of the distribution of the source rock, reservoir and sealing units associated with the mapped structures.

WHL has also reported concluding negotiations with the government and PetroSeychelles regarding the exploration project in the country.

The government has agreed to amend the Petroleum Agreement with the company which recognizes the substantial work carried out by the company in the Seychelles exploration project work and has reduced its remaining mandatory work to the minimum.

According to the original Petroleum Agreement, WHL was committed to drill two wells in the acreage before 31 July 2013, but after the amendment the commitment has been reduced to one well.

WHL has also received a six months extension and it can now complete the commitment work, until 31 January 2014.

The company will be required to acquire another 2,000km 2D seismic after it already acquired 8,000km of new 2d seismic.

WHL will have to reprocess 2,000km of historic 2D seismic and undertake certain geophysical and environmental studies in Exploration Period 2, and abandon non-core acreage.

Following the technical review and renegotiations with the government, the company is also planning to re-launch its project at various industry conferences to attract new farm out partners for the project.

WHL Energy managing director Steve Noske said the company has completed work on the exprloartion project to better describe its potential.

"In tandem it is pleasing to have reached a favourable outcome for the management of the Company’s extensive acreage position with the Seychelles Government and PetroSeychelles," Noske added.

"It is also expected to greatly enhance the attractiveness to potential farminees as we continue our efforts in that regard."