SANTA FE SNYDER
|Monday, December 06, 1999
Santa Fe Snyder Corporation has signed a Production Sharing Contract with the government of Gabon. The contract allows Santa Fe Snyder to explore for hydrocarbons on the Agali Block off the north coast of Gabon which covers an area of approximately 945,000 acres in water depths ranging from 650 to 8,200 feet. Santa Fe Energy Resources of Gabon (Agali), Ltd., a wholly owned subsidiary of Santa Fe Snyder Corporation, is operator of the block and holds 100 percent of the working interest. "For the past several years, some of the most exciting and largest discoveries in the world have been made in the deeper waters along the West African margin. The addition of this block to our existing West Africa program emphasizes the commitment that Santa Fe Snyder has made to this premier exploration arena" said James L. Payne, CEO of Santa Fe Snyder Corporation. The Company has committed to a work program that includes the acquisition of seismic data and the drilling of an exploratory well. The initial exploratory term for the block will last for five years with optional exploratory periods of five years. The contract also calls for a production term of twenty years. The addition of this block brings the Company's net acreage in West Africa to approximately 3,725,000 acres.