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Australian exploration firms vying for Middle Eastern contracts

28th March 2014

Australian exploration firms previously focussed solely on Gulf of Mexico and North American regions are investing in Middle Eastern opportunities

Australian exploration firms previously focussed solely on Gulf of Mexico and North American regions are investing in Middle Eastern opportunities
Australian exploration firms previously focussed solely on Gulf of Mexico and North American regions are investing in Middle Eastern opportunities

Two Australian companies, AWE and Petsec, have signed a deal to allow Petsec a 21.35 per cent participation agreement in Block 7 of the Al Barqa permit of Yemen.

The terms of the transaction include a cash consideration of USD 1m, the replacement of AWE’s existing Letter of Credit with the Arab Bank, and working capital adjustments on completion. Completion of the transaction is subject to customary approvals from the JV Partners and the state owned Yemen Oil and Gas Company.

Petsec Energy’s chairman, Terry Fern, commented on the agreement: “The signing of this agreement is the culmination of a number of years of strategic planning and marks the start of an expansion of Petsec’s portfolio of assets into the Middle East, with the aim of securing high value assets within a region that is highly prospective for oil. Block 7 has the potential to add significant oil reserves to the company’s resource base and significant value to its shareholders. We look forward to working with the operator, Oil Search, to further appraise the Al Meashar oil discovery and explore the remainder of the Block.”

Block 7 covers an area of 5,000 square kilometres and is already being operated by Oil Search, another Australian firm. As well as the Al Meashar oil, seismic surveys have revealed an inventory of leads.

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