Voyager Energy Ltd. has announced that, effective September 18, 2008, the Company has signed Production Sharing Contracts (PSCs) for the Central Range Shallow and Deep Horizons Blocks (Blocks) located onshore Trinidad.
The Central Range Shallow and Deep Horizons Blocks represent the largest onshore award of exploration acreage ever in Trinidad and cover approximately 180,000 acres and 210,000 acres respectively. It is also the first time in decades that the central range of Trinidad will be the subject of a deliberate exploration program in a basin that has to date produced 2.2 billion barrels of oil from its onshore fields.
Voyager Energy currently holds a 100% working interest in the Blocks. The Petroleum Company of Trinidad and Tobago Limited (Petrotrin) has the right to participate for a 35% and 20% working interest in the Shallow Horizons Block and Deep Horizons Block respectively after the completion of the initial four year exploration work program.
"We are very pleased to have been awarded these Blocks, which we believe are very prospective and offer an opportunity to find substantial new oil and gas reserves." said Fong, President and CEO of Voyager Energy in Calgary. Fong further commented that "Trinidad provides a climate of political and fiscal stability supported by a government that promotes and encourages the development of the country's oil and gas industry."
The PSCs provide for an initial exploration phase of four years with minimum work commitments that include the acquisition of 100 kilometers of 2D seismic, 250 square kilometers of 3D seismic, as well as the drilling of one exploration well to a minimum depth of 12,000 feet and three shallow exploration wells to a depth of 4500 feet. Voyager has the option to enter into two additional single year exploration phases beyond the initial exploration phase.
Voyager Energy has agreed, subject to the necessary approvals by Trinidad's Ministry of Energy and Energy Industries, to assign operatorship and 50% of its working interest in the Blocks to Petro Andina Resources Inc. in exchange for Petro Andina paying Voyager Energy's working interest share of the first US $10 million of the seismic program costs in addition to providing all of the financial guarantees required under the PSCs.
In April 2008, the Corporation raised $8,530,000 through a private placement financing with FirstEnergy Capital Corp. consisting of 3,412,000 subscription receipts at a price of $2.50 per subscription receipt. With the signing of the PSCs, all necessary conditions have now been met resulting in the proceeds of the offering being released to Voyager Energy and each subscription receipt being exchanged for one common share bringing the total to 21,898,576 issued and outstanding common shares for the Corporation.
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