By OGJ editors
HOUSTON, June 23 -- RWE Dea AG took a farmout from Global Petroleum Ltd., Brisbane, on Global's two exploration permits in the Mediterranean Sea off Malta.
RWE Dea will earn a 20% interest in the current preliminary exploration study agreement for Global's blocks 4 and 5 in Area 3 east of Malta by funding Global's costs of a seismic survey to be run during the second half of 2006.
RWE Dea and Global then have the option to enter into a production sharing contract, an option to be exercised during the term of the exploration study agreement now extended till the end of 2006.
If the PSC arrangement goes ahead, RWE can carry Global's cost of an obligation well during the first two years of the PSC to earn an additional 50% in the venture.
The permits are in the southern section of the Ragusa Trough which contains giant Vega oil field in Italian waters (see map, OGJ, Feb. 13, 2006, p. 37).