Rick Wilkinson
OGJ Correspondent
MELBOURNE, Apr. 14 -- Key Petroleum Ltd. signed a consortium agreement with Pancontinental Oil & Gas Ltd., both of Perth, for a joint petroleum exploration program off Namibia.
Key will pay Pancontinental as much as $100,000 (Aus.) in reimbursement of past expenditure and share future costs.
Both companies believe the region holds significant oil exploration potential. Pancontinental had a reconnaissance license for 2 years and is applying to convert it into a petroleum agreement and full exploration license. Key will be a 50% participant in any successful award.
The companies said although the small number of wells drilled so far off Namibia have targeted gas plays, Key and Pancontinental will be looking for oil plays.
Key recently had success off Africa's east coast with a gas discovery at Kiliwani North-1 near Songo Songo off Tanzania.
