MALTA ACREAGE
Pancontinental Oil & Gas NL ( Pancon ) advises that it has jointly entered into a Memorandum of Understanding ( MoU ) with Afrex Limited ( Afrex ) and the Government of Malta with a view to being awarded an Exploration Study Agreement ( ESA ) over Block 3 of Area 4 and Block 5 offshore Malta.
The MoU gives Pancon and Afrex an exclusive period of at least 8 weeks to conclude an ESA with the Government of Malta.
As part of the MoU the venturers have agreed to undertake a limited work program, consisting of seismic acquisition, processing and interpretation, to further evaluate a number of potentially large biohermal reef features in Block 5, during the negotiation period. Pancon’s share of the costs of the limited work program is estimated at A$40,000. Similar reefal features in adjacent Tunisia and Libya host major oil and gas accumulations including the Ashtart oilfield which has been reported to contain some 3.7 billion barrels of oil and the Bouri gas field which is reported to contain some 1.9TCF of gas.
Rights and obligations in respect of the MoU and any subsequent ESA are on the basis of Pancon 40% and Afrex 60%. Afrex is an overseas company of which Mr H D Kennedy, Chairman of Pancon, is a director.
Enquiries:
Andrew Svalbe
Tel: 08 9227 7178
Fax: 08 9227 9079
Email: svalbe@pancon.com.au
