The Reconnaissance License work program confirmed the prospectivity of the area for natural gas, and delineated some prospects through seismic reprocessing and gravimetric studies. The Exploration Permits, Bouanane I and Bouanane II, cover an area of 2,115 square kilometers in eastern Morocco. Dana will be the Operator holding a 50 percent interest in the license, with Tethys and Eastern holding 12.5 percent each. ONHYM has a carried 25 percent interest. The Agreement is valid for a term of 8 years, divided into 3 periods. During the first period either 2D seismic needs to be acquired, or an exploration well needs to be drilled.
The signing of the Petroleum Agreement farm out is the result of a process that started in July 2005, when Tethys as operator was awarded 50 percent in a one year Reconnaissance License over the Bouanane area. Eastern Petroleum was partner with the remaining 50 percent. During 2006, the work program associated with the license was completed by summer with encouraging results, and a farmout agreement signed with Dana in September.
"The Bouanane license offers Tethys 12.5 percent interest in an exploration project with tremendous potential where Dana will pay the first 12 MUSD of exploration costs. The reimbursement of past costs creates the opportunity to use that money over again to create a similar opportunity," said Magnus Nordin, Tethys' Managing Director.
Tethys Oil is a Swedish company focused on exploration for and production of oil and natural gas. Tethys aims to maintain a well-balanced portfolio of high risk/high reward exploration opportunities coupled with lower risk exploration and appraisal development assets. The company has interests in licenses in Oman, Denmark, Morocco, Spain, Turkey and France.
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