Denmark

July 10, 2006
Star Energy Group PLC, London, agreed to take 20% interest from Tethys Oil AB, Stockholm, in the Tethys-operated 1/02 license onshore Zealand and 1/03 license onshore and off Jutland and Zealand in Denmark.

By OGJ editors

HOUSTON, July 10 -- Star Energy Group PLC, London, agreed to take 20% interest from Tethys Oil AB, Stockholm, in the Tethys-operated 1/02 license onshore Zealand and 1/03 license onshore and off Jutland and Zealand in Denmark.

License 1/02 contains the Karlebo prospect, where an exploration well is to be drilled this fall (OGJ Online, July 6, 2006).

The farmout calls for Star Energy to pay 20% of historical costs and 40% of the cost of an exploration well on 1/02 to earn its 20% interest. This will reduce the Tethys interest to 50%.

Star Energy is the second largest onshore UK oil producer.