Loon signs up for Block 9 in Syria
Posted: 24 September 2007
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International oil and gas E&P company, Loon Energy has formally signed a contract for the exploration, development and production of petroleum with the Syrian government.
It has agreed with Syria ’s Ministry of Petroleum and Mineral Resources and the Syrian Petroleum Company to operate in Block 9.
The $7.5 million contract, which was first announced on June 1, reserves the exclusive right for Loon Energy to negotiate a PSC covering the 10,000 square kilometre Block 9.
Block 9 is an area largely under-explored located at the northern edge of a hydrocarbon-producing basin called the Homs Basin, where the large Palmyra, Cherrife Da and Ash Shaer fields are found.
Despite its proximity to substantial oil and gas reserves, Block 9 contains only two exploration wells, one drilled in 1977 and the other in 1995. The area of Block 9 is approximately 43 square kilometres smaller than originally awarded as a two-kilometre strip of land along the coast, together with the city limits of Latakia, has been excluded from the original contract area.
Under the terms of the Block 9 PSC, Loon has a first phase exploration period of four years during which it has committed to acquire 600 kilometres of 2D seismic and drill two exploration wells. The exploration period can be extended for up to nine years in phases by performing additional work on an agreed basis.
Loon has a 100% interest and is the operator of Block 9. ANSCO Inc., subject to the approval of the Ministry and SPC, has the right to acquire a 5% working interest in Block 9 on a heads-up basis.
Loon Energy have direct interests in Brunei, Syria, Colombia, Peru, Tunisia and Slovenia and an indirect interest in Pakistan through its shareholding in Jura Energy Corporation. Loon has offices in Calgary , Alberta , Canada , Dubai , United Arab Emirates and Bandar Seri Begawan , Brunei Darussalam. |
