Rak Petroleum has announced that it has acquired Indago Ventures 31 and Indago Ventures 47, two wholly-owned subsidiaries of UK-based Indago Petroleum, which hold exploration rights in two concessions in the Sultanate of Oman.
The acquisition in Oman’s Block 31 and 47 brings Rak’s interest in these blocks to 100%, after it secured the existing 50% interest in the two concessions from Indago back in 2007.
“The acquisition of these two companies and the acquisition of Eagle Energy (Oman) holding a 10% share of Block 8, which RAK Petroleum announced last week, highlight the intention to actively and aggressively expand our exploration and production assets in the region,” stated Abdulaziz Al Ghurair, chairman, Rak Petroleum.
“RAK Petroleum is well positioned with significant cash reserves and is on the lookout for suitable opportunities to add to our portfolio,” he explained.
As consideration for the latest transaction, Indago made a payment to Rak Petroleum of US$3.5 million in relation to a release, subject to certain warranties, from all possible obligations arising from their joint activities and past transactions.
“Rak Petroleum plans to drill the Zad-2 well in Block 47 later in 2009”, stated Bijan Mossavar-Rahmani, Rak Petroleum’s managing director.
“If successful, the Zad prospect provides the potential of a significant gas and condensate field in a prime location only 10km from an existing pipeline accessing Oman’s growing gas markets.
“The exploration well will test the Amin sandstone reservoir, an analogue of the nearby Kauther field,” he added.
