Manas Signs Extended Farm-Out Term Sheet for 6 Blocks in Albania
Manas Petroleum's wholly owned subsidiary, DWM Petroleum AG, signed an extended farm-out term sheet covering Blocks A, B, D, E, 2 and 3 in Albania to a finance group of international oil and gas investors. Both parties have agreed to keep the terms confidential until the signing of a shareholders' agreement.
Erik Herlyn, Chief Executive Officer of Manas Petroleum Corp. said, "With this farm-out, Manas could both lift the large exploration potential of blocks A, B, D and E and additionally drill a well to appraise the Sphiragu discovery in blocks 2 and 3." This farm-out is consistent with Manas' core strategy of acquiring major oil and gas licenses for prospective under-thrust structures and then limiting the financial burdens and risks associated with the exploration and development.
Manas was awarded Blocks A, B, D and E on December 26, 2007 and has explored the blocks since. Portions of Blocks A, B, D and E are now drill-ready. Blocks 2 and 3 were previously explored by Occidental Petroleum, including a 5000 meter deep discovery well in 2001. The council of ministers ratified the production sharing contract for Blocks 2 and 3 to DWM Petroleum on July 8th 2009. Following the award of Blocks 2 and 3, data regarding Occidental's discovery were made available and the Company is currently preparing a 51-101 compliant estimate of the discovery. The farmout is subject to the execution of a final agreement with the farm-out partner.