Medoil Signs Albanian Petroleum Sharing Agreement

MedOil has signed a Petroleum Sharing Agreement (PSA) with the Ministry of Economy, Trade and Energy in Tirana, Albania. The PSA will now be presented for ratification by the Council of Ministers, which the directors expect to take place in late October.

The 'Joni -5' offshore permit is approximately 2,500 sq. km. in area, offshore southern Albania, extending to the northern boundary of Greece with water depths ranging from the coastline up to 800 meters.

The PSA is for seven years with a drill-or-drop decision after the second and fifth years. MedOil's initial obligation is for 400 sq. km. of a 3-D seismic work program in the first two year period with a minimum work expenditure of US $2.05 million.

David Thomas, CEO, comments: "We are pleased to have been awarded this highly prospective offshore permit, where three hydrocarbon plays are identified in the block, all with successful analogues in the Adriatic region. A number of leads and prospects have already been mapped using the existing 2-D seismic data."