Petrogas Kahil, a wholly-owned subsidiary of Petrogas Exploration and Production (E&P), has signed an exploration and production sharing agreement (EPSA) with Oman for a 100 per cent interest in Block 55, renamed as Kahil Block
The Omani company said that the EPSA is a six-year agreement comprising of two phases. The first phase will consist of four years followed by a two-year second phase, added Petrogas Kahil.
Block 55 was originally part of the Block 6, which is Petroleum Development Oman (PDO) concession. Comprising of an area of 7,564 sq km, the onshore oil and gas block is located in the Al Wusta Region on the eastern flank of the South Oman Salt Basin.
According to Petrogas Kahil, Block 55 has around 4,200km of vintage seismic on which four gas wells were drilled until now, the last being in 1995.
Jean Denis Bouvier, chief executive of Petrogas E&P, said, “I wish to express my gratitude to the Sultan, government of Oman and the Ministry of Oil & Gas for entrusting in Petrogas in realising the full value lying in the subsurface of this large concession.”
Petrogas said that it would evaluate a series of geophysical studies to delineate the location and plan new seismic to be shot. The seismic will be shot as early as studies are complete in 2014 followed with a number of exploration wells, the company added.
The company also plans to start the reprocessing of older seismic data and aero-gravity and magnetic surveys early in 2014 in preparation for the seismic plan.
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