Petrogas to Explore for Oil, Gas in Oman's Block 55

Petrogas Kahil, a wholly owned subsidiary of Petrogas Exploration and Production has signed an Exploration and Production Sharing Agreement (EPSA) with Government of Oman for a 100% interest in Block 55, called the Kahil Block.

The EPSA is a six year agreement comprising two phases. The first phase will be four years followed by the second phase which will be two years.

Block 55 was originally part of the Block 6, and comprises an area of 7,564 sq. kms and is located in the Al Wusta region of Oman on the eastern flank of the prolific South Oman Salt Basin.

“I am very excited by the oil & gas potential of this block which has not seen any activity since 1995. With the help of additional seismic coverage and by targeting plays proven since then, I am confident in the prospect of a commercial discovery in Block 55,” Jean Denis Bouvier, CEO, Petrogas E&P, said.

Petrogas will evaluate a series of geophysical studies to delineate the location and plan new seismic to be shot. The seismic will be shot as early as studies are complete in 2014 followed with a number of exploration wells.

The company plans to immediately start the reprocessing of older seismic data and aero gravity and magnetic surveys early in 2014 in preparation for the seismic plan.