Amended concession agreements give Dahan Petroleum Ltd. rights to explore certain outlying areas of the Saleh concession in the Persian Gulf offshore Ras Al Khaimah, said DNO International ASA, Oslo.
Dahan will in turn cover the cost of DNO and RAK Gas LLC’s participation in such exploration.
Dahan has 12 months to review existing technical data and shoot 3D seismic after which it can elect to drill at its sole risk and expense an exploratory well in the acreage surrounding but excluding Saleh field. DNO International would have a 16% carried interest in an exploratory well.
Dahan has the option to drill other exploratory wells with DNO International retaining the option to continue its 16% carried interest on each well or to participate instead at 40% on a paying basis.
The ownership participating interests and other fiscal and operating terms of the concession area containing Saleh field remain unchanged at DNO International 70% and RAK Gas 30%.
Any discovery would be tied back to Saleh, enhancing the commerciality of the planned Saleh redevelopment project, DNO International said (OGJ Online, Nov. 11, 2011).
Dahan is a subsidiary of Lime Petroleum PLC, which is majority owned by Rex Oil and Gas and Hibiscus Petroleum Bhd.