Harvest Natural Resources announced the signing of the Al Ghubar / Qarn Alam Exploration and Production Sharing Agreement with the Sultanate of Oman in Muscat, Oman. Harvest will have a 100% working interest in the block during the exploration phase. Oman Oil Company will have the option to back in to up to a 20% interest in the block after the discovery of gas.
The Al Ghubar / Qarn Alam license is a newly-created block designated for exploration and production of non-associated gas and condensate which the Oman Ministry of Oil and Gas has carved out of the Block 6 Concession operated by Petroleum Development of Oman (PDO). PDO will continue to produce oil from several fields within the block area. The 3,867 square kilometer (955,600 acres) block is located in the gas and condensate rich Ghaba Salt Basin in close proximity to the Barik, Saih Rawl and Saih Nihayda gas and condensate fields. These analog fields produce from the same reservoir horizons targeted by Harvest for drilling. Harvest expects to spend $4.8 million during 2009 for geological and geophysical studies, seismic reprocessing and drilling preparation costs.
Harvest President and CEO James Edmiston said, "We are very pleased to join with Oman Oil Company in signing these agreements marking our entry into Oman. The Sultanate of Oman has developed a strong, diverse economy and offers a favorable investment environment in its petroleum exploration and production sector. The Qarn Alam block is in the core of a proven petroleum basin where we plan to explore for non-associated gas and condensate in deeper horizons beneath producing oil fields. These sites have ready access to infrastructure and an export pipeline for liquids. Harvest plans to drill at least two wells on multiple exploration prospects during the initial three year term of the contract. If commercial hydrocarbon accumulations are discovered, the proximity of infrastructure should facilitate the rapid development of production."
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