The Kurdistan Regional Government (KRG) together with Hunt Oil Company of the Kurdistan Region, a subsidiary of Hunt Oil Company of Dallas, Texas, and Impulse Energy Corporation (IEC) announced that they have signed a Production Sharing Contract (PSC) covering petroleum exploration activities in the Dihok area of the Kurdistan Region. Under the terms of the agreement, Hunt Oil Company of the Kurdistan Region will serve as operator. This is the first PSC to be signed by the KRG since the Oil and Gas Law of the Kurdistan Region was issued by the Kurdistan Parliament in early August, 2007.
Hunt Oil Company of the Kurdistan Region will begin geological survey and seismic work by the end of 2007 and plans to be in a position to drill an exploration well in 2008.
KRG Minister of Natural Resources, Dr. Ashti Hawrami, commented, "The signing of this PSC by Hunt is evidence that the KRG's enactment of a modern and balanced oil and gas law has created a supportive and transparent business environment which promotes investment by international oil companies in our Region for the benefit of all. Revenues from this Kurdistan petroleum development will be shared by the KRG throughout Iraq consistent with the Iraq constitution and the new Oil and Gas Law of the Kurdistan Region."
Mr. Ray L. Hunt, CEO of Hunt Oil Company in Dallas, Texas, said, "We are very pleased to have the opportunity to be a part of these landmark events by actively participating in the establishment of the petroleum industry in the Kurdistan Region of Iraq."
