Indago has entered into a new exploration and production concession agreement in the Sultanate of Oman.
The concession is directly related to Indago’s existing focus on gas-condensates in a proven fairway, with demonstrably strong synergies to the company’s existing business.
On behalf of the Government of the Sultanate of Oman, Oil Minister Mohammed bin Hamad Al Rumhi, signed the Exploration and Production Sharing Agreement (“EPSA”) with Indago Oman Limited (a wholly owned subsidiary of Indago Petroleum Limited) over Block 43A.
Block 43A, comprising an area of 2,923 sq km, is consistent with Indago’s regional exploration focus on the gas-condensates fairway at the front of the Oman Mountains and is on trend with a number of existing discoveries - the most notable being the multi-tcf Sajaa field.
An initial assessment of the Block has identified two significant leads, based on existing seismic and Indago’s regional exploration experience, the company said.
During the first exploration term of three years Indago plans to:
• Conduct re-processing of the existing seismic, by specialist contractors, to improve imaging and high-grade the leads;
• Acquire new seismic over the most promising structures; and
• Be in a position to spud an exploration well in 2008.
It is likely that the well will target the same hydrocarbon bearing formations that have been identified to the South, in Blocks 30, 31 and 47, and in the adjacent northern Emirates.
The company will seek to accelerate the seismic acquisition in Block 43A by leveraging off its existing seismic acquisition contracts in the region.
John Hurst, Indago’s exploration director, said, “The comprehensive stratigraphic and structural interpretations we have carried out on our existing blocks pointed to Block 43A as having excellent potential for sizeable structures, which we believe are most likely to be gas-condensate bearing.
“We are delighted to have been awarded this exciting block which fits neatly into our regional exploration strategy, has identifiable leads to pursue and is adjacent to a proven, productive gas-condensate fairway.”
Indago aims to become a leading producer of gas, condensate and LPG in Oman and the UAE.
This will be achieved through active exploration, development of the existing portfolio and acquisition of related acreage and undeveloped resources in the region.
Indago’s technical and commercial expertise is focused on a tightly defined geographical area of politically stable countries with proven hydrocarbon reserves and an active gas market.
