Pan-Ocean Energy has acquired a 25.71% working interest in two exploration blocks offshore Gabon near the Company's existing Etame Marin Permit. The Company entered into a purchase and sale agreement with Sunburnt Downs Pastoral Co. Pty. to acquire two wholly-owned subsidiaries which in turn hold a 25.71% working interest in each of the Iris Marin Exploration and Production Sharing Contract (EPSC) and in the Themis Marin EPSC respectively.
Both of the Themis and Iris permits are operated by Sterling Energy plc 20.57%, with partners Petroleum Oil & Gas Corp. of South Africa 22.86%, Premier Oil 18.00%, and Ascent Resources 12.86%. The Government of Gabon has an option to back in for 7.5% in both permits.
The Themis Marin and Iris Marin EPSCs cover two shallow water exploration permits offshore Gabon of 902 km(2) and 607 km(2) respectively. Themis Marin borders on the northern edge of the Company's Etame Marin permit and Iris Marin is situated along the Gabon coast approximately 110 km northwest of the main Etame field.
Both the Themis and Iris concessions are surrounded by proven oilfields, and are close to pipelines and production infrastructure. The principal target on both Iris and Themis blocks is the Gamba Sandstone reservoir, similar to that found in Etame to the south.
The Iris Marin EPSC was signed in November 1999 and is comprised of three exploration terms, each of approximately three years duration. The property is currently in the second exploration term, with an exploration commitment well planned to be drilled in July 2005. The co-venturers acquired 1,453 km of 2D seismic and 332 km(2) of 3D seismic.
The Themis Marin PSC was signed in November 1999 and is currently comprised of two exploration terms of approximately three years each. The property is currently in the second exploration term, with the first exploration commitment well expected to be drilled in early 2006.
The co-venturers acquired 1,541 km of 2D seismic and 296 km(2) of 3D seismic and are currently processing a recently acquired 216 km(2) 3D seismic survey in the southern portion of the permit
