Saipem Wins Contract for Perro Negro 3 Offshore India

GeoGlobal Resources reports that Gujarat State Petroleum Corporation, its co-venturer and Operator of the KG-OSN-2001/3 Exploration Block ("KG Block") has awarded Saipem a contract for the Negro 3 jackup for a period of 200 days to commence an exploratory drilling program on the KG Block located offshore India.

The Perro Negro 3 has been contracted to drill four exploratory wells estimated to commence the middle of May 2004. Under the terms of the contract, GSPC would have the option of extending the terms of the contract for six additional exploratory wells.

GSPC has recently completed the acquisition, processing and interpretation of a 1,298 square kilometer marine 3D seismic program on the KG Block. Geological mapping has been completed and a number of drillable prospects have been identified. GeoGlobal has a net 5% carried interest in the KG Block which is located off the east coast of India in the Krishna Godavari basin. The KG Block is adjacent to Block D-6 on which recent discoveries have been made by Reliance Industries of India in partnership with Niko Resources Ltd. and the Government of India.