Oil Optimization announced that its former joint venture partner has assigned its 50% interest in the Petroleum Concession Agreement ("PCA") covering Block L9-48 to OOI, giving the Company 100% ownership and control over the Block. Thailand's Department of Mineral Fuels ("DMF") is also expected to appoint OOI as the official operator going forward, enabling the exploration program to resume immediately.
Under the terms of the assignment the Company will pay its former joint venture partner US $200,000 (a) within 60 days after being granted the Production Area Approval within any part of the Block by the DMF; or (b) within 60 days after the Company transfers any interest in the concession rights in the Block to a third party, including any of the Company's affiliates, subsidiaries or any company under common control of the Company, or one or more companies, which are directly or indirectly associated by means of shareholding, management or otherwise, whichever is the earlier.
An independent resource evaluation (the "Report") was completed on Block L9-50 by Petrotech Engineering Limited ("Petrotech") April 30, 2010. Using probabilistic analysis, Petrotech assigned a total best estimate of Prospective Resources of 95,000,000 barrels of oil, for the twelve Leads on Block L9-48.
The Report provides an estimate of the potential gross undiscovered oil and gas prospective resources underlying Block L9/48 and is in addition to Petrotech's Report dated April 30, 2011, which addressed OOI's 100% interest in the PCA covering Block L14/50. Petrotech assigned a total best estimate of Prospective Resources of OOI's 100% interest of 23,700,000 barrels of oil, for the 5 Leads on Block L14/50.
"OOI's management is pleased with the outcome of the negotiations and now looks forward to accelerating the work program in the coming months," stated Luc Desmarais, President and CEO, who added, "The additional 50% interest in Block L9/48 increases our recoverable prospective resource best estimate by 47,500,000 barrels to 118,700,000 barrels from 17 prospects in the L14/50 and L9/48 Licenses. Historic regional geology and 2D seismic data were reviewed by Petrotech to prepare a probabilistic Prospective Resources Estimate of that portion of the prospects lying entirely within the L14/50 and L9/48 PCA's."
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