At the end of June 2005 Anadarko was tendering for a seismic vessel for the 2-D infill seismic program in ESA Area 5 that was expected to take four weeks. However, following a meeting in Malta in July with the government and subsequent correspondence over the last 1-2 months, the new joint venture, at the Maltese Government's request, has suspended the seismic survey for 6 months to assist the government in facilitating the resolution of the border issues it has with both Tunisia and Libya. These border issues affect the western and southern boundaries of ESA Area 5. The 2004 seismic survey was conducted within undisputed Maltese waters away from these unresolved border areas. It was this seismic survey that revealed a number of significant world class prospects and leads in undisputed Maltese waters which motivated Anadarko to conclude a Participation (Farmin) Agreement with Sun Resources and Pancontinental in June 2005.
While the request of the Maltese Government will delay the seismic, the new joint venture is pleased that the border issues are being addressed. Resolution of the boundary issues has the potential to open up additional areas for exploration within the current permits that the original Sun Resources – Pancontinental joint venture previously chose not to enter. The border negotiations do not impact on the mapped main prospects and leads. It is expected that the delay will now see the seismic program deferred until early 2006 until after the northern hemisphere winter which is a period not conducive for seismic operations. In all probability the program will be run in conjunction with other 2D seismic planned on acreage acquired by Anadarko in its own right in neighboring Tunisian waters.
Current equities in the Malta Joint venture are Sun Resources NL 20% (reducing to 7% after one well) and Pancontinental Oil & Gas NL 80% (reducing to 28% after one well)
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