TransPacific, Mogul, and Sea Dragon will attain an 85% interest in the Concession, subject to the Egyptian Government's approval by expending a minimum of US$4,000,000 to drill 2 wells in the EWA Concession. The first well, EWA-4X, is to be completed to the approval of the EGPC within 2 months of Dover submitting for a deed of assignment to Mogul, TransPacific and Sea Dragon, subject to rig availability. The second well is to be completed to the approval of the EGPC before July 17th, 2007. The US$2,000,000 required for the first well is already on deposit with an escrow agent to pay for the drilling costs of EWA-4X.
Upon approval from the EGPC, final interests shall be TransPacific 25%, Mogul 20%, Sea Dragon 40%, Dover Petroleum Corp 11%, Robert Salna 3% and Brockton International 1%.
The Agreement calls for the remaining 15% interest of the last 3 parties mentioned to be a carried working interest right through to commercial production. The costs of this Carry shall be borne by the parties obtaining the 85% interest.
Sea Dragon President David Thompson said, "This farm-in creates an exceptional opportunity for us as we seek to grow our company and create maximum value for our shareholders. We look forward to developing additional assets in Egypt."
Naeem Tyab, President of Mogul, states that, "Mogul is looking forward to working with its new partners on this exciting project."
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