LL&E AWARDED E&D CONTRACT AREA IN EASTERN ALGERIA

A Louisiana Land & Exploration Co. unit has been awarded an exploration and production contract in Algeria by state oil company Enterprise Nationale Sonatrach. LL&E Algeria Ltd.'s contract covers two blocks in the central Ghadames oil basin of eastern Algeria.

Dec. 7, 1992

2 min read

A Louisiana Land & Exploration Co. unit has been awarded an exploration and production contract in Algeria by state oil company Enterprise Nationale Sonatrach.

LL&E Algeria Ltd.'s contract covers two blocks in the central Ghadames oil basin of eastern Algeria.

The Oulad N'Sir tract, Block 215, covers 840,026 acres 120 km south of Hassi Messaoud giant oil field and 50 km east of El Agreb-El Gassi field. The Menzel Ledjmet tract, Block 405, covers 712,910 acres. Block 405 is 240 km southeast of Hassi Messaoud and 20 km west of 1 Rhourde El Krouf, a recent oil discovery by Spain's Cia. Espanola de Petroleos SA.

LL&E said the contract, yet to be submitted for government approval, calls for a minimum investment of $33 million during a 5 year work program that includes seismic acquisition and drilling a minimum of three wildcats.

There is an option to extend the initial exploration period over a reduced area for an added 5 years. The extension would call for a minimum $22 million additional investment including another seismic acquisition program and drilling a minimum of two wildcats.

During the exploration phase LL&E will operate and provide all financing. Sonatrach will have the option to participate in the event of a discovery.

The contract also provides for a budget to be used for training Sonatrach personnel in exploration and production.