Fusion Inks Deal with SADR for Offshore Technical Assistance
Fusion Oil & Gas has signed an exclusive Technical Cooperation Agreement with the Government of the Saharawi Arab Democratic Republic ("SADR"). The TCA covers the entire offshore territory of the SADR, an area of approximately 210,000 square kilometers, extending from Mauritania in the south to Morocco and the Canary Islands (Spain) in the north. According to the terms of the TCA Fusion will undertake, on behalf of the SADR, a detailed study and evaluation of the petroleum potential of the offshore territory through the collation and integrated interpretation of all relevant and available geological and geophysical data. This process will assist the Government of the SADR to better understand the offshore oil and gas potential of the area and formulate appropriate policy to attract international investment.
It is anticipated that the study will take up to sixteen months to complete. Upon completion Fusion will have the exclusive right to select a maximum of three exploration licenses, each covering an area of up to 20,000 square kilometers. The Government of the SADR has given an undertaking to award the nominated exploration licenses within 6 months of the SADR being admitted to the United Nations.
Alan Stein, Managing Director of Fusion, commented: "The signing of this agreement with the Saharawi Arab Democratic Republic is an exciting milestone for Fusion and follows more than three years of consultation with the Government concerning a collaborative assessment of the offshore oil and gas potential of the SADR. Although past exploration in the area has been limited Fusion has the relevant regional experience and expertise that will allow it to conduct a full and detailed evaluation. A preliminary assessment of historical data suggests that a similar gross stratigraphic sequence to that encountered in Fusion's licenses to the south in offshore Mauritania, The Gambia, Senegal and Guinea
Bissau can be anticipated. We are deeply honored to have been selected by the Government of the SADR to conduct such a significant project."