California's Benton seeks PSA in Jordan

• Jordan Acreage [18,944 bytes]

Benton Oil & Gas Co., Carpinteria, Calif., signed a letter of agreement with Medallion-Huber Jordan Inc. (MHJ) that enables Benton to apply to acquire rights to MHJ's existing production-sharing agreement (PSA) with Jordan's Natural Resources Authority of the Ministry of Energy and Minerals Resources.

MHJ is a joint venture of Medallion Exploration, Midvale, Utah, and Huber Energy LLC, Midland, Tex.

The agreement covers exploration and development of the more than 1.2-million acre Sirhan Block in southeastern Jordan, adjacent to the Jordan-Saudi Arabia border (see map).

Terms call for compensation to MHJ, including an initial payment plus a retained interest in successful projects subject to a specified limit. Benton's financial commitment is spread over three exploration periods.

Completion of the proposed transaction is subject to approval by Jordan's Natural Resources Authority and execution of definitive agreements.

One well on the block tested light oil at low rates, and Benton said several additional wells encountered thick zones with indications of gas that have not been tested.

During the initial exploration period, it's expected that at least two existing wells will be reentered, completed, and stimulated via fracturing.

Also, the company said three large structures have been identified within the contract area.

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