Pan Pacific Petroleum Gets Green Light for Stake in Vietnam Farmin

Pan Pacific Petroleum received the necessary approvals to acquire a 5% interest in the Block 07/03 Production Sharing Contract from Premier Oil Vietnam South. Under the terms of the original farm-out agreement with POVS, PPPV agreed to acquire 15% equity in the block by funding part of POVS' costs of the Ca Rong Do discovery well, CRD-1. However, under the terms of the Petroleum Law in Vietnam and the Block 07/03 Production Sharing Contract, PetroVietnam exercised its right of pre-emption to the extent of 10% of the proposed 15% farm-out interest. Block 07/03 spans 1.21 million acres (4,915 square kilometers) offshore Vietnam in the southern Nam Con Son Basin, and is adjacent to Block 12W, containing the Chim Sao and Dua oil fields. Currently, planning is underway to drill an appraisal well in the fourth quarter of 2010 or the first quarter of 2011.