And in a related story with some aspects as far as the widening interest in the area...
The Falklands: Gulf Canada and Roc Oil Agree to Share Exploration Risk and Upside
Potential, Offshore Falklands
DENVER, COLORADO, June 8 /CNW-PRN/ - Gulf Canada Resources Limited (Gulf) and
Roc Oil Company Limited (ROC) have entered into a Share Sale Agreement (the
''Agreement'') with regard to Gulf's interest in Tranches C & D, north of the Falkland
Islands.
The principal commercial terms of the Agreement may be summarized as follows:
- The Agreement was signed on 21 May 1998 and is subject to the approval
of the Governor of the Falklands Islands.
- Gulf holds a 12.5 per cent interest in Tranches C and D through its
wholly owned subsidiary Clyde Expro Limited. Gulf will transfer its
entire interest in Tranches C and D to a wholly owned subsidiary, to be
named Gulf-ROC Falklands Ltd., following which ROC will acquire 100 per
cent of the outstanding shares of that company.
- ROC, a Sydney-based privately funded oil exploration company, will
reimburse Gulf for its net share of 1998 Joint Venture costs, meet all
of the ongoing expenditure obligations that would otherwise be for
Gulf's account and issue to Gulf 120,000 ROC shares at an issue price
of US$22/share, reflecting the current market price of ROC shares based
on independent third party transactions. ROC will also appoint a Gulf
nominee to its Board of Directors.
- ROC will also issue to Gulf up to 75,000 additional ROC shares, at
US$22/share, depending upon the results of the 1998 drilling campaign
in Tranches C and D and neighbouring areas.
- If a commercial discovery is declared in either Tranche C or D, Gulf
will have the option to reacquire 20 per cent of its original 12.5 per
cent interest, or the economic equivalent thereof, by reimbursing 20
per cent of ROC's net expenditures plus interest.
- The issuance of ROC shares to Gulf is subject to the approval of
Australia's Foreign Investment Review Board.
The North Falkland Graben lies approximately 200km north of the Falkland Islands and
covers an area of about 7500 sq km/1.85 million acres (Attachment 1). The first well drilled
in the region was spudded by Amerada Hess in late April 1998 in Tranche A, approximately
1.5km north of the northern boundary of Tranche C. Neither Gulf nor ROC participated in
the drilling of the Amerada well which reportedly encountered oil and gas shows in
non-commercial quantities prior to being plugged and abandoned in late May 1998. The first
well on the Minke prospect in Tranche C, which is subject to the Agreement, is scheduled to
spud in early June 1998 and is projected to reach a Total Depth of about 1900m. |
