Petrel Resources, has finalized a Production Sharing Agreement (PSA) on the East Safawi Block in Jordan. The East Safawi Block forms part of the oil and gas prospective Arabian Desert. The East Safawi block adjoins the producing gas field at Risha and neighbouring oil producing blocks in Syria. The oil targets are in shallow formations and there are well-established gas plays at deeper levels.
The Jordanian Production Sharing terms are world class. The contractor receives 60% of oil production – or gas equivalent – up to 10,000 barrels daily, with a sliding scale to a 35% share of production over 100,000 barrels daily oil equivalent.
The agreement allows for a three year first phase exploration. Initial work includes seismic reprocessing and reinterpretation and new seismic. Targets identified will be followed up by drilling. Work already completed by Petrel on the block suggests a number of drillable targets. Drilling is expected to take place in late 2008 – early 2009, depending on operational developments.
Petrel Managing Director, David Horgan, said, "This is a good block, in a highly prospective area: the Arabian Desert has both oil and gas potential. With great terms already in place, we are starting work straight away, reprocessing and acquiring seismic to identify drilling targets."
(Gulf Oil & Gas)