Plectrum Takes Stake in Nabeul Block Offshore Tunisia
Plectrum Petroleum, has agreed, subject to the approval of the Tunisian authorities, to purchase 90 percent of REAP Tunisia GmbH and thereby acquire a 50% interest and operatorship of the Nabeul Block, offshore Tunisia. This proven petroleum province is a location well suited for the adoption of Plectrum's strategy of de-risking deepwater exploration prospects through implementing newly emerging technologies such as electo-magnetic imaging techniques.
Under the terms of the agreement, Plectrum will acquire 90 per cent. of the issued share capital of REAP Tunisia, the entity holding the 50 per cent interest in the Nabeul Block. Consideration for the acquisition is a cash payment of £250,000 and the agreement to spend £2.5 million on a work program. The Vendor will also retain an overriding royalty interest in the permit.
The Nabeul Block is located in the Gulf of Hammamet, adjacent to existing oil producing concessions, in water depths of 250-800m. The Block covers 3352 km(2) (equivalent to 13 North Sea Blocks) and the initial Prospection Permit phase runs until 24th January 2008. Three further exploration periods of up to 5 years each are also available. The proposed work program includes the reprocessing of existing seismic data, the acquisition of a conventional modern 2D seismic grid and modelling to confirm the suitability of Electro Magnetic (EM) imaging and Marine Magnetotelluric (MMT) in the Block.
Final completion of the transaction is subject to the approval of the Tunisian authorities. Upon completion Plectrum will have a 50 per cent. working interest as operator. Entreprise Tunisienne d'Activites Petrolieres ("ETAP"), the Tunisian Oil and Gas government company, has the other 50 percent. interest.
Mike Whyatt, Plectrum's Executive Chairman, commented:
"I am delighted to announce this important strategic addition to our portfolio of assets where we believe the application of innovative new exploration techniques can significantly enhance pre-drilling resource assessments.
The acquisition of this highly prospective North African exploration acreage demonstrates the viability of the Company's business model of identifying attractive frontier exploration opportunities. Several prospective structures have already been identified in the Birsa sand fairway play in the Block that are capable of trapping oil volumes in excess of 100 mmboe. In due course our goal will be to better define these potential volumes prior to committing to an exploration well.
We look forward to working with ETAP and using this acquisition as a platform
for further expansion in this exciting, proven petroleum province."
- Cairn: Increasing Asset Portfolio through Acquisitions (Sep 07)
- Plectrum Petroleum to Convert Nabeul Permit Into an Exploration Permit (Jul 24)
- Plectrum Begins 2D Shoot Offshore Tunisia (May 30)
Company: Entreprise Tunisienne d'Activites Petrolieres (ETAP) more info
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