HUNT TO EXPLORE BLOCK IN SOUTHERN LAOS

March 5, 1990
The Laotian government and Laos Hunt Oil Co. have signed a production sharing contract covering 6.4 million acres in the southern part of Laos. The agreement provides for an initial 2 year exploration term with options for four more 2 year terms. Laos Hunt, a subsidiary of Hunt Oil Co., Dallas, will conduct geological and geophysical studies in the first 2 years of operations and acquire at least 500 line km of seismic data during the second 2 years. The company will drill an unspecified number

The Laotian government and Laos Hunt Oil Co. have signed a production sharing contract covering 6.4 million acres in the southern part of Laos.

The agreement provides for an initial 2 year exploration term with options for four more 2 year terms.

Laos Hunt, a subsidiary of Hunt Oil Co., Dallas, will conduct geological and geophysical studies in the first 2 years of operations and acquire at least 500 line km of seismic data during the second 2 years.

The company will drill an unspecified number of wildcats to maintain the contract beyond the fourth year.

The contract was signed Feb. 23.

The Lao Ministry of Industry and Handicraft will administer the production sharing agreement for the government.

Laos has no crude oil and natural gas legislation but began negotiating contracts broadly based on its foreign investment laws (OGJ, June 26, 1989, p. 28).

Last fall Laos awarded a 70-30 partnership of Enterprise Oil plc, London, and Cie. Francaise des Petroles, Paris, a production sharing contract on about 5 million acres, a northwest offset to Hunt's contract area (OGJ, Sept. 25, 1989, Newsletter).

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