Exploration: News for Oil & Gas and Hydrocarbon Industries  Membership Services
Gulf Oil and Gas grow your business
Home News Events Projects Tenders Unconventionals Community | My Account
Products and vendors Services and providers Jobs

Oracle Energy Entered Agreement To More Than Double Its Interest Nn the Block 22 In Yemen

Source: www.gulfoilandgas.com 9/17/2005, Location: Middle East

Share |

Oracle Energy Corp. has entered into an option agreement with Yemen Mayfair Petroleum Corp. (YMPC) to acquire an additional 8% interest in the expansive Block 22 exploration concession in the Republic of Yemen. As consideration for the option the Company will pay YMPC 200,000 Oracle common shares. This option agreement allows Oracle the right to more than double its participating interest in Block 22 from 7% to 15%. The option agreement is subject to TSX Venture Exchange approval.

Oracle President Nasim Tyab says that this new option agreement offers the Company considerable leveraged exposure to the "company maker" potential of the 8,151-square-kilometre Block 22 exploration concession, situated within Yemen's hydrocarbon-rich Tihama Basin. "With our initial focus on the Beta Prospect within Block 22, the joint venture partnership's initial October drill program is targeting multiple potential pay zones with the potential for world-class discoveries," he says. "If the Beta drill program is successful, we have also identified at least four other prospects or leads on Block 22 that would merit further evaluation and which could provide additional potential oil reserves."

Block 22 was awarded to YMPC in 1993. Notably, principals of YMPC were instrumental in the discovery of Yemen's first giant oil field in the mid-1980s, located in the Marib Basin.

Prior to acquiring its initial 7% participating interest, Oracle commissioned an independent technical evaluation report by UK- based Merlin Energy Resources. The table below is an excerpt from the Merlin Report and lists the potential reserves in only one of the potential pay horizons. Merlin has mapped a total of four horizons referred to as blue, orange, yellow and magenta.

Oracle may exercise its option to acquire the additional 8% interest by paying YMPC US$560,000 by October 15th 2005 and by assuming 8% of past exploration costs incurred on the block which equates now to US $1,449,696. Past costs are to be paid over time following completion of a positive test well. The US$560,000 paid to YMPC will be added to Oracle's contribution towards the drilling, testing, and completion of the Beta -1 Well, scheduled to be drilled mid-October 2005. Oracle will be credited for and entitled to receive its pro-rata share of any deductions or cost allowances allowed pursuant to the Production sharing agreement (PSA) with the Yemen government. Oracle will also share with YMPC, on a pro-rata basis, all rights and considerations entitled by YMPC pursuant to the PSA.

Oracle Energy presently holds a 7% participating interest in Block 22. The cost to the Company for its 7% participating interest is $700,000, which has already been paid. This also includes the assumption of 7% of past costs incurred on the exploration block, equating to US $1,155,000. Past costs are to be paid over time following completion of the first 8,000 foot exploratory well.

Exploration News in Yemen >>

Eni Discovers a Supergiant Gas Field in the Egyptian Offshore
Egypt >>  8/30/2015 - Eni has made a world class supergiant gas discovery at its Zohr Prospect, in the deep waters of Egypt. The discovery well Zohr 1X NFW is located in th...
GeoPark Finds New Light Oil Field Discovery in Colombia
  Colombia >>  8/27/2015 - GeoPark Limited, the Latin American oil and gas explorer, operator and consolidator with operations in Chile, Colombia, Brazil, Argentina and Peru, an...

Lowering Costs & Enhancing Efficiency Program Achieved By CNOOC Limited in H1 of 2015
  China >>  8/26/2015 - CNOOC Limited announced its interim results for the six months ended June 30, 2015. ...
Circle Oil's KSS-A Well on The Sebou Permit Disappoints
Morocco >>  8/26/2015 - Circle Oil plc, the North African focused oil and gas exploration, development and production company, provides the following information on the progr...

Cash-Strapped Liberia State Oil Company to Slash Staff in Revamp
  Liberia >>  8/25/2015 - Cash-strapped National Oil Company of Liberia (NOCAL) will slash its work force by over two-thirds as part of measures aimed at cutting costs amid a f...
Mexico Sweetens Oil Auction Terms Again to Avoid Repeat of Flop
  Mexico >>  8/25/2015 - Oil companies competing in the next phase of Mexico's historic Round One auction will know the minimum level of profits demanded by the government pri...



Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Yemen Oil & Gas 1 >>  2 | 3 | 4 | 5 |

More News

Oil & Gas Projects in Yemen >>

Oil & Gas Companies in Yemen >>

Related Links

Countries Quick Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas B2B marketplace:   About -  Advertising -  Competitive Intelligence -  Talent Solutions -  Membership Services Follow us on Facebook
Copyright Universal Solutions All rights reserved. Privacy Policy. - Contact Us  Gulfoilandgas rss feed