Petsec Energy has acquired a 21.25% stake  in Block 7, Al Barqa Permit in the Republic of Yemen.Â
The Block is an onshore exploration permit covering an area of 5,000 square kilometres, located approximately 340km east of Sana’a, the capital of Yemen. The block is operated by Australia’s Oil Search Limited, and contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2D and 3D seismic surveys.
The terms of the transaction include a $1 million cash consideration, the replacement of AWE’s existing Letter of Credit with the Arab Bank, and working capital adjustments on completion. Completion of the transaction is subject to customary approvals from the JV partners and the state owned Yemen Oil and Gas Company.Â
“The signing of this agreement is the culmination of a number of years of strategic planning and marks the start of an expansion of Petsec’s portfolio of assets into the middle EAst, with the aim of securing high value assets within a region that is highly prospective for oil. Block 7 has the potential to add significant oil reserves to the company’s resource base and significant value to its shareholders. We look forward to working with the opertor, Oil Search, to further appraise the Al Meashar oil discovery and explore the remainder of the block,” said Petsec Energy’s chairman, Terry Fern.Â
