Nuevo acquires interests in two Tunisian permits

Nuevo Energy Co., Houston, on Monday said it has agreed to enter into two exploration permits in Tunisia and has increased its holding in a third. Nuevo says the Alyane and Anaguid permits significantly expand its international presence. The company expects to receive governmental approval for both acquisitions this month.


Nuevo Energy Co., Houston, on Monday said it's agreed to enter into two exploration permits in Tunisia and has increased its holding in a third.

Nuevo says the Alyane and Anaguid permits significantly expand its international presence. The company expects to receive governmental approval for both acquisitions this month.

"The Alyane and Anaguid permits represent significant exploratory potential for Nuevo and provide a strategic balance of opportunities that complements our domestic California exploration program,'' said Doug Foshee, Chairman and CEO of Nuevo.

The Alyane permit, in the Gulf of Gabes off Tunisia, lies in the prolific nummulite limestone trend where many of Tunisia's and Libya's largest fields have been discovered, including Hasdrubal, Salambro, Bouri, and Ashtart. Recoverable reserves from these fields are estimated to total more than 1.5 billion boe.

Nuevo will operate and hold a 100% interest in the block. It acquired the interest from Coho Resources Ltd., Calgary.

The agreement for the Alyane permit calls for an initial term of 4 years, followed by two optional 3-year terms. Nuevo's work commitment requires shooting 3D seismic and drilling one exploratory well on the permit during that time. The seismic will be shot in early 2001 and the well drilled in late 2001 or early 2002.

Nuevo has also acquired a 10.42% interest from Bligh Tunisia Inc. in the 1.1 million acre Anaguid permit, in the Ghadames basin in southern Tunisia. Anadarko Petroleum Corp. is operator of the Anaguid block, which lies on trend with Anadarko's prolific Hassi Berkine complex, located to the west in Algeria.

The permit requires the partners to drill one exploration well on the permit by December 2001. The final renewal phase requires the drilling of a second exploration well during the 2�-year term.

Meanwhile, Nuevo has increased its 17.5% interest in the 900,000-acre Fejaj permit in Tunisia by acquiring an additional 20% interest from Bligh Tunisia. Nuevo and its partners plan to re-enter and deepen the Chott Fejaj No. 3 well late this year to test a subsalt prospect. The well was drilled to the top of salt in 1998.

Nuevo's asset portfolio includes blocks in Republic of Congo, Ghana, and Tunisia.

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