Area Drilling

Jan. 19, 2004
Afrex Ltd. plans to finalize a production sharing contract in the next 6 months governing the 11,550 sq km Massawa Block in the Red Sea off central Eritrea.

Eritrea

Afrex Ltd. plans to finalize a production sharing contract in the next 6 months governing the 11,550 sq km Massawa Block in the Red Sea off central Eritrea.

Afrex, as operator, Pancontinental Oil & Gas NL, and Hardman Resources NL signed a memorandum of understanding with the government covering terms negotiated during the past 12 months. A finalized PSC would give the group exploration rights for as long as 7 years. The companies plan to remap existing seismic data, reprocess if necessary, and acquire new seismic data. They then will consider inviting farmees to earn equity by drilling one or more wells.

The Massawa block lies in a Tertiary aged salt basin. Surface oil seeps have been identified near the Dahlak Islands.

Block interests are Afrex 40% and Pancontinental and Hardman 30% each.

Yemen

The Ministry of Oil & Minerals extended Hunt Oil Co.'s 20-year production sharing agreement on Marib Block 18 for 5 years expiring Nov. 14, 2010.

The company's Marib and Jannah blocks in Yemen produced more than 1 billion bbl of oil through mid-2003, when production averaged 145,000 b/d.

Ontario

Admiral Bay Resources Inc., Toronto, spudded a well to evaluate coalbed potential of the Moose River basin in the southernmost James Bay Lowlands region of northeastern Ontario.

The ABWG-04-01 well in the West of Gentles Township area is to test the methane content of an 18-ft coal seam in a 46-ft Cretaceous-age coal bed.

The $2 million, 15-25 well program is expected to involve the drilling of about 5,000 m of hole.

Admiral Bay 90% and private James Bay Energy Ltd. 10% hold 257,680 acres of land between Kapuskasing and Moosonee some 775 km north-northwest of Toronto.