Dover Awarded Exploration Rights for East Wadi Araba Concession
Dover Petroleum Corp.'s president, Robert Salna, and Egyptian Oil Minister Sameh Fahmy along with other dignitaries participated in an official signing ceremony in connection with the Concession Agreement for Petroleum Exploration and Exploitation throughout the East Wadi Araba Area of the Gulf of Suez. The Concession Agreement covers an area of 393 square kilometers (151.7 square miles).
Under the Option Agreement, and as required by the Concession Agreement, Dover Egypt I Joint Venture has budgeted spending of US $12,000,000 for drilling of 6 proposed exploration wells over the next 7 years. Drilling of the first of two exploration wells, budgeted at a cost of US$3,700,000, is expected to start on September 15, 2002.
Dover Petroleum Corp.'s wholly owned subsidiary, Dover Petroleum Egypt I, Inc., owns a 50% interest in Dover Egypt I Joint Venture, which is a party to an Option Agreement entitling Dover Egypt I Joint Venture to acquire 100% of Dover Investments Limited operator's interest in the East Wadi Araba Concession Agreement.