MKJ Xploration to explore off Nicaragua

Nicaragua has signed a 6-year contract with Louisiana-based MKJ Xploration for exploration and development of offshore crude oil and natural gas fields.

May 5, 2008

Eric Watkins
Senior Correspondent

LOS ANGELES, May 5 -- Nicaragua has signed a 6-year contract with Louisiana-based MKJ Xploration for exploration and development of offshore crude oil and natural gas fields.

MKJ Xploration head Eric Conrad said the company will search for oil in two areas about 100 km off Nicaragua in the Caribbean Sea. If oil or gas is found, the company will have production rights for 30 years.

Conrad said wells would be drilled in water as deep as 1,000 m. He said the company would pay 15% royalties on oil drilled and 30% of net profits earned in the country.

Contact Eric Watkins at [email protected].