30th Sep 2014 15:48
LONDON (Alliance News) - Dragon Oil PLC Tuesday said it has been awarded two exploration blocks in Algeria in partnership with Italian power company Enel SpA.
In a statement, the oil and gas explorer said it will hold a 70% participating interest in the Tinrhert Nord Perimeter in the Illizi Basin in Eastern Algeria. The block is 2,907 square kilometres and is close to a number of producing oil and gas fields. Enel will hold the other 30%.
A number of undeveloped discoveries have been previously identified on the perimeter. The commitment during the exploration period includes acquisition and interpretation of 2D seismic data and drilling four wells.
Dragon will also hold a 30% participating interest in the Msari Akabli Perimeter, with Enel holding the rest and acting as operator. The block is in the Ahnet Basin in South-western Algeria and covers 8,096 square kilometres.
A number of undeveloped discoveries have also been previously identified on this perimeter. The commitment during the exploration period includes acquisition and interpretation of 3D seismic data and drilling three wells.
"This achievement represents a strategic move for Dragon Oil to establish a footprint in another North African country known to be rich in hydrocarbon resources and opportunities," Dragon Oil Chief Executive Abdul Jaleel Al Khalifa said in a statement.
The blocks were awarded as part of Algeria's 4th bid round for oil and gas block licenses. Contracts are expected to be signed in about a month.
Dragon Oil shares ended down 1.0% at 596.50 pence Tuesday, before the news of the award broke.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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