Beach Petroleum Ltd., Adelaide, signed a production sharing agreement for a 100% interest in the Lake Tanganyika South concession with the government of Tanzania.
By OGJ editors
HOUSTON, June 24 – Beach Petroleum Ltd., Adelaide, signed a production sharing agreement for a 100% interest in the Lake Tanganyika South concession with the government of Tanzania.
The pact gives Beach the right to explore the remote Great Rift Valley in western Tanzania. The company’s exploration program targets plays analogous to those in Uganda’s rift system. The southern part of the block borders Zambia.
PSA terms are confidential but are more favorable than Tanzania Petroleum Development Corp. standard terms, Beach said. Tanzanian PSAs are structured into three exploration phases of 4 plus 4 plus 3 years.
Beach will conduct geophysical surveys and geological studies in the first phase to determine the range of drilling opportunities available. This information will help in designing seismic surveys. Beach has a well commitment in each of the second and third exploration phases and has the option, at the end of each phase, to relinquish all of the remaining acreage without further obligation.
Beach hopes to complete aerial gradiometric gravity and magnetic surveys in calendar 2010.