Plectrum 'Reaps' 50-Percent Interest in Nabeul

Plectrum Petroleum Plc

Plectrum Petroleum said that it has completed the acquisition of REAP Tunisia GmbH ("REAP Tunisia") to gain a 50 percent interest and the operatorship of the Nabeul block, offshore Tunisia.

Under the terms of the agreement, outlined in announcements on 25 July and 12 June 2006, Plectrum has acquired 90 percent of the issued share capital of REAP Tunisia, the organization holding the 50 percent interest in the Nabeul Block, located in the Gulf of Hammamet, offshore Tunisia.

The 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.

Plectrum Petroleum's work program includes the reprocessing of existing seismic data, the acquisition of conventional modern 2D seismic and modeling to confirm the suitability of Electro-Magnetic Imaging and Marine Magnetotelluric in the Block.

The other 50 percent interest in the Nabeul Block is held by the Tunisian government oil and gas company Entreprise Tunisienne d'Activites Petrolieres.

Mike Whyatt, Plectrum's Executive Chairman said: "I am delighted to announce the completion of this acquisition. This highly prospective acreage is a key strategic addition to our asset portfolio, where we believe the use of innovative exploration techniques can significantly de-risk prospects prior to drilling. We can now work towards our goal of better defining the oil volumes in several prospective structures already identified in the Block prior to committing to an exploration well."