Rocksource Closes in on Farm-in Agreement With ONGC

Rocksource, engaged in oil and gas exploration and production, has announced that it is in advanced stages of negotiations to complete a farm-in agreement with the Oil and Natural Gas Corporation for a 10% equity stake in the exploration block CY DWN 2001/1, on the Indian Shelf.

The negotiations have reportedly been concluded and both parties are expected to sign the agreement within the next two weeks. The first well in the work program is being drilled. Operations have been slightly delayed, and final results from the well are not expected until late September 2008 or early October 2008.

This high-impact well targets the primary prospect where Rocksource has completed an integrated prospect evaluation which included controlled source electromagnetic data.

This evaluation reportedly suggests that the prospect chance of success is in excess of 60%. On completion of the farm-in agreement, the Oil and Natural Gas Corporation (ONGC) will hold 45% equity, while Oil India holds 20% and Petrobras holds 25% from an agreement signed in October 2007; while Rocksource will own 10%.