Petsec Energy Ltd. has executed an agreement with Oil Search Ltd. to acquire all the shares of its subsidiary Oil Search (ROY) Ltd. which holds a 34% participating interest in Block 7, Al Barqa Permit, in the Republic of Yemen, and is the designated operator of the block.
The Oil Search agreement follows the agreements executed in 2014 with AWE Ltd. (21.25%) and Mitsui E&P Middle East BV (8.5%) to acquire their respective participating interests in Block 7. The acquisition of Oil Search (ROY) Ltd. (OSROY) increases Petsec's overall participating interest in Block 7 to 63.75%, and Petsec will assume operatorship of the block.
Block 7 is an onshore exploration permit covering an area of 1,235,527 acres (5,000 square kilometers) located 211 miles (340 kilometers) east of Sana'a, the capital of Yemen. The block contains the Al Meashar oil discovery as well as an inventory of leads and prospects defined by 2D and 3D seismic surveys with significant oil potential.
Completion of the transaction is subject to customary approvals from the Government of Yemen, the Ministry of Oil and Minerals.