Under the terms of its arrangement, Taghmen will ultimately acquire a 65% interest in the license but will not be Operator. Taghmen has identified several leads that could contain potential reserves of approximately 20 million barrels (13 million net to the Company). The initial work program covers a four year time frame with approximately $1 million to be borne by Taghmen in the first year related to a new 2D seismic shoot, together with the reprocessing of existing data. Following the initial program the Company can choose to proceed with further work or to relinquish a portion of the license at the end of each year.
The transaction is expected to close within the next 45 days and is dependent on the underlying license being successfully issued.
This follows the award to Taghmen of the "Midas" license in the same region, as announced on 15th February 2006, which is estimated to have the potential for recoverable reserves of up to 90 million barrels.
Nicholas Gay, CEO of Taghmen Energy Plc commented:
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