23rd Jun 2006 08:43
Global Petroleum Ltd23 June 2006 German oil and gas company RWE Dea to farm-in to Global Petroleum's Malta blocks The German oil and gas company RWE Dea AG farmed in to Global Petroleum'soffshore exploration blocks in Malta. As a result Global's share of the costs ofseismic work and potentially an exploration well will be carried by RWE Dea. Announcing the farm-in agreement today, Global Chairman Dr John Armstrong saidthat RWE Dea is a welcome party in the joint venture. "This farm-in is very goodnews for Global shareholders," he said. "RWE Dea is an international oil and gasproducer and explorer and is part of the RWE Group, one of Europe's largestcompanies. It is active in exploration and production as operator and nonoperating partner in Germany, the UK, Norway, Denmark, Egypt, Dubai andKazakhstan, and holds exploration licences in Algeria, Libya and Poland. In2005, RWE Dea's oil and gas production was approximately 120,000 boe per day," Under the farm-in agreement, RWE Dea earns a 20% interest in the ExplorationStudy Agreement for Global's Malta Blocks 4 and 5 of Area 3, with Globalretaining 80%. RWE Dea plans to undertake seismic studies in the 2nd half of2006 in the blocks at RWE Dea's cost. RWE Dea and Global have the option, to be exercised during the term of theExploration Study Agreement, to enter into a Production Sharing Contract. Theminimum work commitment during the first two year exploration period under thisProduction Sharing Contract is the drilling of one well. By carrying Global'sshare of the cost of that well on a dry hole basis, RWE Dea will earn anadditional 50% in the venture with Global retaining 30% (including a 3% intereston behalf of Envoi Limited, the UK marketing agency that assisted Global in thefarm-in process). Dr Armstrong said that the Malta blocks are located in the southern region ofthe Ragusa Trough which contains the Vega oil field in the Italian part of thebasin and which extends south from Sicily in the Mediterranean Sea. The blockscontain several leads which will be the principal focus of the planned seismicprogram with RWE Dea. The Government of Malta has extended the Exploration Study Agreement for afurther six months until 31 December 2006 allowing the planned seismic workprogram which will be operated by RWE Dea to proceed Dr John ArmstrongExecutive Chairman Telephone: (07) 3211 1122Fax: (07) 3211 0133Web: www.globalpetroleum.com.au This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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