By OGJ editors
HOUSTON, Jan. 6 -- 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.