FIELD ACTIVITIES / GHP Exploration Announces Farm-In Agreement
GHP EXPLORATION CORPORATION ENTERS SECOND EGYPTIAN CONCESSION
Date: 6/8/98 7:07:42 AM
Stock Symbol: GHPX.U
GHP Exploration Corporation (CDN:GHPX.U) is pleased to announce the signing
of a Farmout Agreement with Tanganyika Oil Company Ltd. and Dublin
International Petroleum (Egypt) Limited ("Dublin") whereby the Company's
wholly owned subsidiary, GHP Exploration (Egypt) Ltd. shall farm-in to the
West Gharib Concession located in Egypt. Under the terms of the Farmout
Agreement, GHP will earn a 30% working interest in the concession. The
Company's interest is subject to ratification by the Egyptian government. In
the unlikely event that such ratification does not occur, the Company's
interest will be held in-trust for the benefit of the Company by Dublin.
The initial exploration phase of the concession consists of three years and
calls for the acquisition and processing of 300 line kilometers of 2-D
seismic data, 50 square kilometers of 3-D seismic data and the drilling of
three exploratory wells for a total minimum expenditure of $5 million. The
exploration phase may be extended with similar commitments following the
initial three year term.
The West Gharib Concession consists of 2,530 square kilometers (630,000
acres) and is located onshore within the prolific Gulf of Suez basin. The
area is proven to be productive with 10 fields located within (excised from
the concession) or adjacent to the concession. The West Gharib block
comprises the west flank of the Gulf of Suez basin for more than 120
kilometers. Nine structural leads and prospects have been identified to
date. The primary petroleum trap styles consist of tilted extension fault
blocks and sandstone drapes or carbonate buildups over highstanding rift
blocks. Reservoirs occur at numerous levels from the Paleozoic sandstones of
the Nubia formation to the Miocene-Belayim formation. The joint venture
partners plan to acquire 3-D and 2-D seismic data over previously identified
prospects and drill up to two exploratory wells during the fourth quarter of
1998.
The Company is also pleased to announce that it has completed negotiations
with Alliance Egyptian National Exploration Company (News-February 9, 1998)
and has executed a Participation Agreement to earn a 25% working interest in
the 4.5 million acre Central Sinai Concession in Egypt.
Following the execution of the Farmout Agreement covering the West Gharib
Concession, GHP has increased it's interests to approximately 5.1 million
acres in Egypt (1.3 million net acres). Approximately 1.25 million acres
(330,000 net acres) of which is located within the prolific Gulf of Suez
basin. The Company has committed to drill a minimum of seven exploratory
wells during the next three years on these two concessions.
GHP engages in the exploration for and development and production of crude
oil and natural gas in the United States and internationally with operations
and interests in acreage in the Gulf of Mexico, West Texas, Egypt and in
Tunisia. The Company currently has 18 million common shares outstanding.
Upon conversion of the Special Warrants (News - March 2, 1998) into common
shares and common share purchase warrants, the Company will have 21.8 million
common shares outstanding.
|
