Cairn unit enters Tunisia upstream through acquisitions

Cairn Energy PLC's exploration subsidiary Capricorn Petroleum Ltd. has entered Tunisia's upstream by acquiring two firms with interests in the country.

Sept. 11, 2007

Eric Watkins
Senior Correspondent

LOS ANGELES, Sept. 11 -- Cairn Energy PLC's exploration subsidiary Capricorn Petroleum Ltd. has entered Tunisia's upstream by acquiring two firms with interests in the country.

Capricorn has agreed to purchase the whole of the issued share capital of Plectrum Petroleum PLC, Aberdeen, for $47.3 million and MedOil PLC, London, for $25.1 million.

Plectrum holds a 50% equity interest in the Nabeul permit off Tunisia and has additional interests in Australia, Peru, and the UK.

MedOil holds a 100% interest in the Louza permit off Tunisia and also has pending licenses off Albania, Spain, and Sicily.

Prior to the acquisitions Dyas BV agreed to acquire a 10% shareholding in Capricorn for $90 million.

Tunisia has seen promising activity in its gas sector. In July Pioneer Natural Resources announced its fifth discovery in the onshore Jenein Nord Block, while OMV last year made two finds in the Jenein South Block.

Contact Eric Watkins at [email protected].