GeoGlobal Inks Deal for Two Onshore Exploration Blocks in India
GeoGlobal signed Production Sharing Contracts on two previously announced Exploration Blocks in India. The signing, which was held at a ceremony in New Delhi, India on September 23, was part of the signing of 20 new exploration blocks which were awarded by the Government of India under the fifth round of the New Exploration Licensing Policy ("NELP-V").
The Production Sharing Contracts each provide for work commitments to be performed over three phases over an exploration period of a total of 7 years with specified 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$12.1 million for both blocks over the 7 years.
Exploration block DS-ONN-2003/1, also referred to as Block 12 under NELP-V, covers an area of approximately 3,155 square kilometers (sq. kms) onshore in the Deccan Syneclise Basin located in the northern portion of the State of Maharashtra in west-central India. The Company holds a 100% participating interest ("PI") in this block and will be the operator. The work commitment under Phase I being 3 years, is to complete a gravity magnetic and geochemical survey and acquire an aero magnetic survey of 12,000 line kms. In Phase II being 2 years, we are to acquire 500 linear kms of 2D seismic and drill 1 exploration well. In Phase III, also 2 years, we are to acquire 250 sq. kms of 3D seismic and drill 2 exploratory wells.
Exploration block CB-ONN-2003/2, which is also referred to as Block 11 under NELP-V, covers an area of approximately 448 sq. km. onshore in the Cambay Basin located in the State of Gujarat south-east of GeoGlobal's existing three Cambay blocks. The Company holds a 10% PI, Gujarat State Petroleum Corporation Limited ("GSPC") is the operator and holds a 50% PI, with the remainder held by GAIL (India) Ltd. and Jubilant Capital Pvt. Ltd. The work commitment under Phase I being 3 years, is to acquire 448 sq. kms of 3D seismic, reprocess 650 linear kms of 2D seismic and drill 14 exploratory wells between 1,500 and 2,500 meters. In Phase II, also 3 years, we are to drill 4 exploratory wells, and in Phase III, the final year, we are to drill 6 exploratory wells, all between 2,500 and 3,000 meters.
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