Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 7 -- Pogo Producing Co. and Keeper Resources Inc. have signed an exploration and production sharing contract with state-owned PetroVietnam for Block 124 covering 1.48 million acres in the Phu Khanh basin northeast of Ho Chi Minh City.
Pogo and Keeper will acquire 850 sq km of 3D seismic data and drill two wells during the first 3 years of a 7-year exploratory phase. Additional terms of the contract offer two optional 2-year periods, during each of which a well must be drilled.
PetroVietnam retains the right to participate in any commercial discovery with up to a 20% working interest.
Pogo Chairman and Chief Executive Paul G. Van Wagenen said existing 2D seismic data indicate several leads in Miocene and Paleozoic rocks.
Keeper said it will have an initial 25% working interest, and Pogo will hold 75% and operate the block. Keeper said it has entered into an assignment agreement with Pogo under which Keeper's 25% interest will be acquired by Pogo in return for a 5% gross overriding royalty.
Contact Eric Watkins at [email protected].
