Epsilon has been awarded Block 55, an oil and gas concession covering approximately 7,564 square kilometers located onshore in the southern central section of the Sultanate of Oman. The award was made via a competitive bidding process. His Excellency, Dr. Mohammed bin Hamed al Rumhy, Minister of Oil and Gas, personally welcomed Epsilon Energy Ltd. to Oman and pledged his full support and support of his Ministry to Epsilon. Local TV and print media prominently reported the event.
In management's opinion, Block 55 is highly prospective for commercial oil and gas exploitation. Exploration plans during the initial three year exploration program include acquiring 800 kilometers of seismic data, reprocessing 4,000 kilometers of existing seismic data, which will be followed up by a drilling program covering a minimum of four initial exploratory wells designed to exploit Block 55's upside oil and gas potential.
Within Block 55 four exploratory wells have been previously drilled, including the Ameeq-1, which is a discovery well that may contain reserves in the range of one to ten million barrels of oil. The three other exploratory wells previously drilled on Block 55 were determined to be exploratory dry holes, with oil shows encountered in two of them. Adjacent to and within 20 kilometers of Block 55, there are approximately 27 discoveries and producing fields, of which 12 are currently producing oil and gas, with one hundred fifty eight (158) producing wells. In addition, OilEx, who operates an adjacent block, has reported a significant oil discovery near the southern border of Block 55. Other oil and gas operators in the Sultanate of Oman include PDO, EnCana, Hunt Oil, Reliance Industries, MOL, Sinopec and Occidental.
Fred Zaziski, Epsilon's President and CEO, stated, "We are delighted to be working in partnership with the Sultanate of Oman to assist in the development of its oil and natural gas sector. We intend to execute our work program on a timely basis with the goal of bringing significant additional commercial oil and gas production online within the country. Our entry into Oman represents a significant development in Epsilon's aspirations within the region. To this end, we are establishing an office in Oman to support our participation in the continued development of the Omani oil and gas industry and to assess further opportunities in the region."
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