JSX announces that recent negotiations with Singapore-based INTERRA Resources Limited has concluded successfully with the signing of a long-term Farmin Agreement, with the signing of a joint operating agreement to follow shortly. JSX and INTERRA will now proceed to jointly explore and develop JSX’s Petroleum Concessions, located in an under-explored and highly prospective region of Thailand.
“Teaming up with INTERRA is consistent with our strategy of exploring high probability targets while minimizing financial risk” said Luc Desmarais, JSX’s President & CEO. “Together we stand a much greater chance of unlocking the full potential in the Mae Sot and other basins within our concessions, all of which are situated in close proximity to the Country’s most productive onshore oilfields” he added.
Under the terms of the agreements, INTERRA will fund 100% of the US$4.3 million committed operating expenses required to complete the 3-year exploration programs, in exchange for a 50% participating interest, while expenditures in excess of US$4.3 million will be funded proportionally by JSX and INTERRA. The entire funding commitment was backed up with irrevocable bank guarantees in favour of the Thai Government, ensuring full performance and a continuous work program until the year 2010. The total spending on the concessions may exceed US$15 million over the first & second exploration programs.
INTERRA Resources is an experienced operator with oil production onshore Indonesia and in central Myanmar and their common shares trade on the Singapore Exchange Securities Trading Limited.
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