Farm-Out Agreement Signed for Tranquilo Block, Chile
Manas Petroleum Corporation announces that its wholly owned subsidiary, Manas Energia Chile Limitada farmed-out interest in the Tranquilo block in the Magallanes Basin, Chile to a local group exploring and producing in the basin.
Erik Herlyn, Chief Operating Officer of Manas Petroleum Corp.: "This farm-out is consistent with our core strategy of acquiring major oil and gas licenses for highly prospective under thrust structures and then limiting the financial burdens and risks associated with their exploration and development. Similar to our Kyrgyz and Tajik projects we have reduced our costs while enjoying the benefit of having a highly capable partner."
Manas and IPR won the tender for the Tranquilo block on November 15, 2007 and signed a Special Operating Contract (CEOP) with the Chilean ministry on April 30, 2008. The final ratification of the CEOP is expected during Q2 2008. The farm-out-agreement is effective after the final ratification of the CEOP and the necessary approvals for licensee status of the farminee through the appropriate Chilean authorities.