MOBIL TO EXPLORE LARGE BLOCK ON, OFF DOMINICAN REPUBLIC

Mobil Corp. has obtained an offshore/onshore concession in the Dominican Republic, spurring the first exploration in that country in almost a decade. Mobil Exploration Dominican Inc.'s agreement covers 5.6 million acres in the southern Dominican Republic, covering about one third of the country. The company will conduct geological and geophysical field work that includes gathering, processing, and interpreting 1,500 line km of seismic date in the first 2 years of the concession agreement.

Dec. 17, 1990

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Mobil Corp. has obtained an offshore/onshore concession in the Dominican Republic, spurring the first exploration in that country in almost a decade.

Mobil Exploration Dominican Inc.'s agreement covers 5.6 million acres in the southern Dominican Republic, covering about one third of the country.

The company will conduct geological and geophysical field work that includes gathering, processing, and interpreting 1,500 line km of seismic date in the first 2 years of the concession agreement.

Focus of the exploration work will be with oil and gas prospects onshore and offshore in the Azua and San Pedro basins.

In the first 2 years of the contract, Mobil will spend about $3 million for concession rights and geological and geophysical data.

If results are encouraging, Mobil may drill exploratory wells and conduct additional seismic work.

Mobil must await ratification of the contract by the Dominican congress. That could come this month or possibly in January or February.

Mobil expects to begin the work within 3 months of ratification.

Throughout each phase of the program, Mobil will assume 100% of the investment risk.

Superior Oil Co., which Mobil acquired in 1984, drilled 7-8 noncommercial wells in the Dominican Republic's Enriquillo basin. The last well, thought to be the island nation's deepest, was drilled in 1981.

The agreement concludes negotiations that began in March 1989.

The government received support in the negotiations in the way of investment and legal advisory services from the United Nations' natural resources and energy division.