Sudan grants consortium 70,000 sq km oil search rights
KHARTOUM, March 13 (Reuters) - Sudan signed an oil exploration agreement with a consortium covering around 70,000 square km (43,470 square miles) stretching southwards from White Nile state, state-owned Alwan newspaper reported on Monday.
It said the Energy Ministry signed the agreement on Sunday.
The consortium consists of a joint venture of the Qatari Gulf Petroleum Company and local al-Ghanawa firm, with a 46 percent stake, three unnamed Canadian and European companies, also with 46 percent, and state oil firm Sudapet, with eight percent.
Alwan said the concession area includes the Adar Yel oilfields near Melut in Upper Nile state, about 600 km (375 miles) south of Khartoum.
Al-Ghanawa is owned by local businessman Salah Idris, owner of the Shifa pharmaceutical factory in Khartoum that was flattened by U.S. cruise missiles in 1998 on suspicion of making poison gas components. Sudan said the plant made only medicine.
No other details of the agreement were disclosed.
canoe.ca
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Fosters Resources Ltd. Signs Production Sharing Agreement in Sudan
Canada Newswire, March 12
CALGARY, March 12 /CNW/ - Fosters Resources Ltd. ("Fosters") (CDNX Trading Symbol - FRE) is pleased to announce that Melut Petroleum Company Ltd. ("Melut") has entered into an Exploration and Production Sharing Agreement (the "EPSA") with the Government of The Republic Of Sudan and other private companies to explore for oil and exploit an existing oil discovery on a concession (the "Concession") covering the majority of the Melut Basin in central Sudan. Fosters currently has a 25% interest in Melut and has agreements with 3 other shareholders of Melut which will allow Fosters to increase its ownership in Melut to 83.33%.
Pursuant to the terms of the EPSA and subject to the availability of funds, Melut will spend U.S. $30,000,000 exploring and developing the Concession over a three year period and will earn a 46% interest in the Concession and in an existing field. Melut's exploration strategy will focus on the establishment of sufficient oil reserves to justify the construction of a pipeline to tie in the existing field and any new reserves which may be discovered. The EPSA provides Melut with a right to participate in the construction of any such pipeline. Drilling is anticipated late this year, after the rainy season has ended.
Fosters is in discussions with a syndicate of investment dealers respecting an upcoming financing to raise the funds necessary to carry out the first phase of exploration.
"The signing of the EPSA provides one of the most exciting opportunities for Fosters to date," commented Randy Pawliw, President of Fosters. "We look forward to working with The Government of the Republic of Sudan and our other partners to capitalize upon this opportunity."
The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.
/For further information: please contact Randy Pawliw, President of Fosters Resources Ltd., at (403) 213-2930. |
