Petrel Resources Regulatory News (PET)

1 May 2007 07:02

Petrel Resources PLC01 May 2007 PETREL RESOURCES PLC Petrel awarded Production Sharing Agreement in Jordan • Petrel awarded PSA by Jordanian government covering East Safawi Block • Highly prospective exploration territory, close to producing fields in both Syria and Jordan • 3 year exploration programme agreed, commencing with seismic interpretation and acquisition to define drilling targets Petrel Resources, the AIM-listed oil explorer and developer operating in Iraq,has finalised a Production Sharing Agreement (PSA) on the East Safawi Block inJordan. The PSA Effective Date will be May 1st when it will be published in theOfficial Gazette of 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 neighbouringoil producing blocks in Syria. The oil targets are in shallow formations andthere are well-established gas plays at deeper levels. The Jordanian Production Sharing terms are world class. The contractor receives60% of oil production - or gas equivalent - up to 10,000 barrels daily, with asliding scale to a 35% share of production over 100,000 barrels daily oilequivalent. The agreement allows for a 3 year first phase exploration. Initial work includesseismic reprocessing and reinterpretation and new seismic. Targets identifiedwill be followed up by drilling. Work already completed by Petrel on the blocksuggests a number of drillable targets. Drilling is expected to take place inlate 2008 - early 2009, depending on operational developments. Jordan is a stable constitutional monarchy. The Jordanian authorities arepro-business. Jordan is part of the Arab gas pipeline project and will be both acontributor and reliable access route for Middle Eastern gas exports to Europe. Petrel Managing Director, David Horgan, commented: 'This is a good block, in a highly prospective area: the Arabian Desert has bothoil and gas potential. With great terms already in place, we are starting workstraight away, reprocessing and acquiring seismic to identify drilling targets. Winning the East Safawi Production Sharing Agreement is the culmination of threeyears work with the Jordanian authorities. Terms are world-class, especiallyfor oil. Jordan is an excellent business location: secure, friendly andpro-business, which geographically and geologically fits well into Petrel'sIraq-centred strategy". Contacts: Petrel Resources plcDavid Horgan + 353 87 292 3500John Teeling + 353 1 8332833 College HillPaddy Blewer +44 (0)20 7457 2074Nick Elwes Blue Oar SecuritiesJohn Wakefield +44 (0)117 9330020 This information is provided by RNS The company news service from the London Stock Exchange