The Production Sharing Contracts each provide for work commitments to be performed over three phases over an exploration period of a total of six years with specified 3D seismic and exploration drilling activities to be conducted during those work commitment periods. The Company will be required to fund its proportionate share of costs incurred in these activities. The Company's share of these costs is estimated to total approximately US$2.5 million for both blocks over the 6 years.
Exploration block CB-ONN-2002/2, also referred to as Blocks 9A and 9B under NELP-IV, covers an area of approximately 125 square kilometers (sq. km) onshore in the Cambay Basin. The Company holds a 10% participating interest ("PI"), Gujarat State Petroleum Corporation Limited ("GSPC") holds a 60% PI, and Jubilant Enpro Pvt Ltd., ("Enpro") who is the operator, holds the remaining 30% PI.
The work commitment for this exploration block is to acquire 75 sq. km of 3D seismic and drill a total of 11 exploration wells to various depths between 1000 and 2200 meters.
Exploration block CB-ONN-2002/3, which is also referred to as Blocks 10A and 10B under NELP-IV, covers an area of approximately 285 sq. km. onshore in the Cambay Basin. The Company holds a 10% PI. GSPC is the operator and holds a 55% PI, with the remainder held by Enpro and Prize Petroleum Company Limited.
The work commitment for this exploration block is to acquire 120 sq. km of 3D seismic and drill a total of 17 exploration wells to various depths between 1500 and 3000 meters.
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