GeoGlobal Wins Four Blocks Onshore India
GeoGlobal formed a new consortium with Oil India Limited ("OIL"), as operator, and others to bid on 4 exploration blocks offered under NELP-VI. OIL is an Indian National oil company under the administrative control of the Ministry of Petroleum and Natural Gas. This new consortium was successful in being awarded three of the four exploration blocks it bid for.
These blocks include Blocks 20 and 21 under NELP-VI (RJ-ONN-2004/2 and RJ-ONN-2004/3), which collectively cover an area of approximately 3,526 square kilometers (sq km) onshore in the Rajasthan Basin located in the northern portion of the State of Rajasthan in northwest India. GeoGlobal holds a 25% participating interest ("PI") in both blocks with OIL, as operator, holding a 75% and 60% PI respectively, and the remaining 15% in Block 21 held by the Hindustan Petroleum Corporation Limited ("HPCL") of India.
The third block awarded to GeoGlobal's new consortium was Block 28 under NELP-VI (KG-ONN-2004/1), which covers an area of approximately 548 sq km onshore in the Krishna Godavari Basin, directly adjacent to and southwest of our existing offshore KG Block (KG-OSN-2001/3). GeoGlobal holds a 10% PI in this block, while OIL, as operator holds the remaining 90% PI. On September 14, 2006, prior to submission of our NELP-VI bids, the Company entered into an agreement with OIL to increase its participating interest up to 25% in the new exploration block, subject to the availability of sufficient net worth and Government of India consent.
With respect to the fourth block awarded, GeoGlobal continued its focus on the Deccan Syneclise Basin, by successfully bidding on Block 27 under NELP-VI (DS-ONN-2004/1), which covers an area of approximately 2,649 sq. km. onshore in the northern portion of the State of Maharashtra in west-central India, directly east and adjacent to GeoGlobal's Exploration Block DS-ONN-2003/1 awarded under NELP-V. The Company has a 100% PI in both of the DS blocks and is the operator.
The Production Sharing Contracts ("PSC") for the four blocks are expected to be signed in New Delhi, India on or about March 2, 2007.
GeoGlobal Resources Inc., headquartered in Calgary, Alberta, Canada, is a US publicly traded oil and gas company, which through its subsidiaries, is engaged primarily in the pursuit of petroleum and natural gas through exploration and development in India. Since inception, the Company's efforts have been devoted to the pursuit of Production Sharing Contracts with the Government of India. Currently, the Company is focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Rajasthan and the Deccan Syneclise basin areas.