Maurel & Prom Expands Exploration Territory in Colombia and Tanzania

Maurel & Prom, through its wholly owned subsidiary Hocol, has signed with the National Hydrocarbon Agency of Colombia a new exploration and production contract in the eastern Cordillera region, approximately 100km northeast of Bogota. Also, the company has signed with Dominion Oil & Gas a farm-in agreement for a 50% working interest on the Mandawa Block in Tanzania.

The new exploration and production (Muisca) contract covers an area of 2,368sqkm. It is operated on a 100% basis by Maurel & Prom with royalties estimated at 8%. According to the Muisca contract, Maurel & Prom is committed to acquiring 100km of 2D seismic and to drill one exploration well over the next 24 months.

The Mandawa Block is located just south of Maurel & Prom’s Bigwa-Rufiji-Mafia block. The agreement is subject to the approval of the government of Tanzania and to the negotiation of a joint operating agreement between the two parties.

The Mandawa production sharing agreement (PSA) occupies 6,811sqkm onshore in Tanzania. The PSA was signed in May 2005. The initial exploration period lasts for four years during which time the contractor must acquire 300km of seismic and drill two exploration wells. Dominion has already fulfilled the seismic commitments.

The PSA also allows for optional first and second extension periods. The first extension period lasts for a further four-year period, during which the contractor must acquire a further 150km of seismic and drill two more exploration wells. The second extension period lasts for three years during which the contractor must drill a single further exploration well.