PANCONTINENTAL signs Exploration Study Agreement with
Maltese Government on two prospective offshore permits.
Pancontinental Oil & Gas NL ( Pancon ), further to the announcement of 28 February 2001, advises that in conjunction with Afrex Ltd it has executed an Exploration Study Agreement (ESA) with the Maltese Government for two offshore permits totalling approximately 14,800 square kilometres to the southwest of Malta.
The two contiguous permits are designated Area 5 and Block 3 of Area 4. The ESA gives Pancontinental an exclusive period of at least 18 months, extendable for 3 years, with a right to convert to a long term Production Sharing Contract (PSC) with the Government of Malta. An initial Memorandum of Understanding was signed in February 2001.
The co-venturers have already completed the acquisition, processing and preliminary interpretation of a 75 kilometre seismic survey to evaluate the size and characteristics of a number of large interpreted Cretaceous to Eocene age bioherm / reef complex features, first observed in the only previously existing seismic line in Block 5.
The Pancontinental and Afrex seismic survey acquired two new seismic profiles parallel to and 5 kilometres either side of the existing seismic line.
On preliminary interpretation the bioherm / reef features are large and extend past the outer seismic lines to the North with the exception of one feature which on preliminary interpretation appears to be fully closed within the seismic grid. Structural closure of all features is indicated to the South. The structures require further seismic verification.
Within the same geological province in bordering waters of Tunisia and Libya, bioherm / reef features with similar seismic characteristics contain major world-class commercial producing oil and gas fields. Amongst the largest of these are the Eocene age Bouri oilfield reported to contain reserves of some 3.7 billion barrels of oil. The Eocene Ashtart oil and Cretaceous Miskar gas fields range from 200 million barrels to over one trillion cubic feet of gas.
Following the full review of all existing data, the joint venture will undertake further geophysical programs to refine the extent and size of the known bioherm / reef complexes as well as exploring for other features. The first new seismic will prioritise areas for more detailed seismic surveys and for potential drilling targets.
Tunisia is understood to have claimed a portion of the western part of one of the areas covered by the ESA as being in Tunisian rather than Maltese waters. The current area of focus of the co-ventures, which contains the bioherm / reef features, lies within a portion of Area 5 which it is understood is claimed only by Malta. Discussions are in progress to reach agreement on the boundaries between the two countries.
The rights and obligations in respect of the ESA and the associated agreed work programs are on the basis of Pancontinental Oil and Gas NL 40% and Afrex 60%. Afrex is an overseas company of which Mr H D Kennedy, Chairman of Pancontinental, is a director and Mr Crabb is his alternate.
Enquiries:
Andrew Svalbe
Tel: 08 9227 7178
Fax: 08 9227 9079
Email: svalbe@pancon.com.au
It is advised in accordance with Australian Stock Exchange Limited Listing Rule 5.11 that the report on the above project has been prepared by Mr Andrew Svalbe, AAPG, PESA, ASEG, FESWA who has had more than the required five years experience and is a competent person as defined in the Listing Rules of Australian Stock Exchange Limited and has consented in writing to the inclusion of this report as it appears here.
