Sydney, Australia (ABN Newswire) - Petsec Energy (ASX:PSA) (OTCMKTS:PSJEY) is pleased to advise it has executed an agreement with KUFPEC to acquire their 25% working interest in Block 7, Al Barqa Permit, in the Republic of Yemen.
The KUFPEC transaction brings our potential interest in the block to 100% pending completion of the KUFPEC and Oil Search transactions which are subject to customary approvals from the Government of Yemen, the Ministry of Oil and Minerals.The KUFPEC agreement follows the agreement executed in 2015 with Oil Search Limited to acquire its 40% working interest in Block 7 and operatorship. Petsec is currently the registered holder of a 35% working interest in the block.
Block 7 is an onshore exploration permit covering an area of 5,000 square kilometres (1,235,527 acres) located approximately 340km east of Sana'a, the capital of Yemen. The block contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2D and 3D seismic surveys with significant oil potential.
Block S-1, acquired in February 2016 from Occidental Petroleum, holds the developed An Nagyah Oilfield, and four undeveloped oil and gas fields which hold substantial oil and gas resources, in excess of 34 million barrels of oil and 550 billion cubic feet of gas.
Crude oil shipments from Yemen restarted in August 2016 for the first time since March 2015 when 4 million barrels of oil were shipped from the Ash Shihr terminal near Mukalla on the Gulf of Aden, and in turn the Masila oilfields have returned to production. The Aden Refinery, which has a 150,000 bopd processing capacity, has returned to production and the Company anticipates the restart of the Total operated LNG plant at Bal Haf on the Gulf of Aden.
Petsec Energy's Chairman, Terry Fern, commented on the Agreement:
"We are pleased to have entered into this agreement with KUFPEC which increases our interest in Block 7 to 100%. The Al Meashar oil discovery and the 8 large prospects and leads in Block 7 hold the potential for substantial oil reserves and a consequent substantial increase in the value of Petsec Energy. We look forward to the early start of production from the An Nagyah Oilfield in Block S-1 and subsequent production from the two suspended wells on the Al Meashar oil discovery in Block 7".
To view the press release, please visit:
http://abnnewswire.net/lnk/M7OA43TQ
About Petsec Energy Ltd:
Petsec Energy Ltd (ASX:PSA) (OTCMKTS:PSJEY) is an independent oil and gas exploration and production company listed on the Australian Stock Exchange and on the US OTC Market. It has operations in the shallow waters of the Gulf of Mexico and Louisiana Gulf Coast region of the USA, and in the Republic of Yemen.
Source:
Petsec Energy Ltd
Contact:
Mr. Paul Gahdmar
Company Secretary & Group Financial Controller
Petsec Energy Ltd
T: +61-2-9247-4605
F: +61-2-9251-2410
Mr. Manny Anton
Head of Investor Relations
Petsec Energy Ltd
T: +61-2-9247-4605
F: +61-2-9251-2410
www.petsec.com.au
Source: ABN/Asia Business Newswire
(November 14, 2016 - 6:20 PM EST)
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