29th Jun 2006 07:00
OILEX NL29 June 2006Australian Stock ExchangeCompany Announcements OfficeElectronic Lodgment SystemDear Sir,RE: OILEX CONSORTIUM SIGNS AGREEMENT FOR BLOCK 56 IN OMANOilex is pleased to advise that the Government of the Sultanate of Oman hassigned the Exploration and Production Sharing Agreement ("EPSA") for Block 56with the consortium led by Oilex (as operator), on 28 June in Muscat in thepresence of His Excellency Dr. Mohammed bin Hamed Al-Rumhy, Minister of Oil &Gas, Sultanate of Oman, other Government dignitaries and Senior officials ofthe Ministry of Oil & Gas.Block 56 was the consortium's first choice block and the highest rated of theblocks on offer in the bid round that closed on 1 January 2006. The block islocated onshore, adjacent to producing fields operated by PDO, the Omannational oil company, in the South Oman Salt Basin, which is one of the mainproducing basins in Oman (see map).The recognition of 20 structural leads and the possible presence of a thickersedimentary section in the eastern area implying a more extensive distributionof the Ara Salt play across Block 56 raises the possibility of salt relatedstructures similar to those producing to the west in the main salt basin andjustified a comprehensive work program that has been agreed under the EPSA.[REFER ASX RELEASE DATED 29/6/06 ON OILEX WEBSITE www.oilex.com.au]Map of Oman showing location and leads - Block 56The work programme will commence with reprocessing of existing seismic data inJuly. Acquisition of 2D and 3D seismic is planned to commence in last quarterof 2006 depending on availability of seismic contractors. The value of the workprogramme is estimated to be about US$7.5 million net to Oilex over the initial3 year term. Drilling is expected to start towards the end of first half 2007.The award completes another element of the company's stated strategy ofacquiring high quality exploration acreage in countries around the Indian Oceanrim in joint venture with its Indian joint venture partners. The consortiumcomprises Oilex (25% and Operator) and GAIL India Ltd (25%), VideoconIndustries Ltd (25%), Hindustan Petroleum Corporation Ltd (12.5%) and BharatPetroleum Corporation Ltd (12.5%) from India.For and on behalf of the BoardDr. Bruce McCarthyManaging Directorcc: Directors: MC/GIJ/RGB Level 3, 50 Kings Park Road West Perth Western Australia 6005 P.O. Box 588 West Perth Western Australia 6872 Telephone (61 8) 9226 5577 Facsimile (61 8) 9226 2108 email: [email protected] www.oilex.com.au ENDOILEX NLRelated Shares:
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