By the OGJ Online Staff
HOUSTON, Sept. 20 -- DNO ASA, Oslo, has agreed to farm into Calgary-based First Calgary Petroleums Ltd.'s Block 43 in Yemen.
Previously, Canadian Nexen Yemen Ltd. had agreed to farm into the block, but certain closing conditions were not satisfied, said FCP (OGJ Online, June 20, 2001).
DNO will assume operatorship. It will fund second exploration phase work through either declaration of a commercial discovery or the expenditure of $7.5 million (US). The commitment includes the drilling of two wells and acquisition of 500 km of seismic data.
DNO will also pay lease bonuses of $600,000/year until earning obligations are met. FCP will retain 11.7% of the foreign contractors' interest in the block.
The Yemen Oil Ministry has granted preliminary approval to the farmout. Final approval is expected shortly, said FCP.
The tract is near Masilla Block 14, which is producing more than 220,000 b/d of oil.
DNO operates Block 32 immediately north of 43 and holds an interest in Block 53 to the west. FCP said both 32 and 53 are under development.
