Frontier Resources Oman Ltd., a wholly owned subsidiary of Frontier Resources International Plc, has signed an Exploration and Production Sharing Agreement (EPSA) with the Government of the Sultanate of Oman for a 100% interest in Block 38, the Mudayy Block.
The EPSA is a six year agreement comprising two three year phases. The Block covers an area of 17,425 square kilometers and is located in the Dhofar region of southwest Oman in the southern part of the Rub Al Khali Basin. To the west lies the Republic of Yemen and to the east is the South Oman Salt Basin.
Block 38 has had only three wells drilled and is considered prospective for oil and gas given the production from the nearby Block 6 operated by Petroleum Development Oman.
Based on the evaluation of vintage seismic, well data and regional geologic studies, Frontier is of the opinion that the Block contains an untested salt basin with exploration potentially analogous to the other proven salt basins of Oman. Primary targets are the carbonate stringers embedded in Ara Group salts lying at depths of between 3,000 and 5,000 meters. Secondary targets include the shallower Haima Play which had minor oil shows during drilling and the deeper Buah Formation which has proven to be gas productive elsewhere in Oman.
Frontier will conduct geophysical and geological studies during the first phase of the agreement to determine the range of drilling opportunities that may be available. This information will then be used to design a 3D seismic survey the results of which will lead to the drilling of a well if a suitable structure is identified. The company plans to immediately start the reprocessing of older seismic data and acquire aerogravity and magnetic surveys early in the new year in preparation for the 3D seismic.