Indocan Resources Applies for Cambodian Exploration Rights

Indocan Resources says that the first two of four applications to the Cambodian Government were filed today for the exploration rights of coastal areas and offshore areas of the country. Cambodia has long been known to have huge potential offshore oil and gas reserves worth as much as 500 million dollars a year, but a lack of infrastructure combined with disputes over ownership with neighboring Thailand have hindered progress.

Surveys suggest that the Overlapping Claims Area (OCA) have high hydrocarbon potential with estimates of 11 trillion cubic feet of natural gas. If successfully extracted, then the country could receive up to $1 billion per annum in revenue from its fifty percent stake. Equally contentious, though for completely different reasons, are Cambodia's onshore basins. In the late 1990's the Japanese National Oil Corporation (JNOC) conducted $20 million dollars' worth of aeromagnetic and gravity surveys over the Tonle Sap (South East Asia's greatest lake) and Mekong Delta basins. The survey area covered 54,000 sq km and identified two deep sedimentary features in the Tonle Sap basin and a third in the Mekong basin.

Indocan Resources president, Jeffrey Bruhjell said that "In January 2005, ChevronTexaco announced that its affiliate has discovered oil in four exploration wells in offshore Cambodia Block A. The 6,278 square kilometer block, encompassing the Khmer Basin with water depths averaging 240 feet, was awarded to Chevron Overseas Petroleum (Cambodia) Ltd. (COPCL), and its partners in March 2002. COPCL has a 55 percent interest in the block and is the operator. Oil pay zone logged in the wells ranges from 41 feet to 139 feet. Analysis of samples indicates the oil is 44 degree API crude."