Winstar Resources Ltd., Calgary, signed a memorandum of understanding with a private European exploration and production company to farm out for cash and a work program as much as half of Winstar’s 45% working interest in the Sabria concession in west-central Tunisia.
The deal would provide Winstar an opportunity to accelerate development of extensive probable reserves associated at Sabria, incremental working capital, and drilling at Sabria while Winstar’s capital is focused on developing Triassic and Silurian potential on the Chouech Essaida and Ech Chouech concessions in southern Tunisia.
Within 2.5 years after government approval, the Sabria farmee would rework one well and drill and complete three horizontal development wells to exploit reserves in the Ordovician Hamra and El Atchane formations. The work commitment is subject to budgetary approval by Tunisia’s state ETAP, which owns a 55% working interest in Sabria.
