CDS Agrees to Boqueron Farm-in Option for Black Rock
CDS Oil & Gas Group plc has agreed to a farm-in option with Black Rock Oil & Gas plc that gives Black Rock the option to farm-in down to the Carboniferous in the 800,000-hectare Boqueron Concession in northwestern Paraguay.
Under the terms of the agreement Black Rock has a 100-day option period in which to acquire a 20% interest in hydrocarbons occurring down to and including the Carboniferous. The consideration for this acquisition will be a combination of a cash sum to reimburse past costs and 40% of the costs of a 2-D seismic program. Should Black Rock fail to exercise the option a break fee of $50,000 will be payable. CDS has the option to terminate this option in the event that there is a change in control of the company or in the event that a third party agrees to farm-in for a percentage greater than 30% over the same target formation.
John Bentley, Chairman of CDS, stated: "We are pleased that Black Rock has decided to participate with us in the continued exploration of the Paraguayan properties. This participation by an industry partner confirms our confidence in the potential for these properties."
The Boqueron Concession
CDS commissioned a study in September 2006 of the Emilia oil prospect from CAS International LLC (Collarini) of Houston, Texas (the "CPR") to evaluate the extent of the Emilia target and its
resource potential. As set out in that announcement, the CPR estimates that the
mid-case resource potential in the 142 hectares area of the Emilia prospect is
27.2 million barrels of original oil in place, of which 6.4 million barrels are
thought to be recoverable. There are several other Emilia analogs on the
Boqueron Concession. The key technical and financial assumptions of the report
for the 143-hectare Emilia Well area on the Boqueron Block is available in the
CDS announcement of 20 November 2006.
- CDS, PetroSaudi Visit Paraguay for Hydrocarbon Investment Pow-Wow (Oct 13)
- CDS Survey of Paraguay Positive (May 19)
- CDS Snaps Up Seismic Data for Boqueron Block in Paraguay (May 13)
Company: Black Rock Oil & Gas more info
- Black Rock Oil & Gas Terminates Offer Talks with Third Parties (Dec 10)
- Black Rock Seeks Merger Opportunities (Jul 07)
- Black Rock Announced Disposal of R3 Retention Lease in Australia (Jun 16)
Company: Collarini Associates more info
- CDS Agrees to Boqueron Farm-in Option for Black Rock (Apr 30)
- Gulfsands Ups U.S. Proved, Probable Reserves by 31% (Apr 30)
- CDS Completes Resource Audit in Paraguay (Nov 21)