Posted on 04.02.2005 - 03:49 EST in UPCOMING PROJECTS by ginamc
As announced in the Company's news release of January 4, 2005, effective December 1, 2004 the Company acquired a 36% shareholding in the capital of BSP in consideration of the issuance of 2,300,000 common shares of the Company. The amended Share Sale and Purchase Agreement will result in the Company holding a 40% ownership in the capital of BSP and is subject to regulatory approval. BSP holds a 100% interest in the exploration concession B7/38, offshore Thailand.
BSP reports that it has executed a contract for the services of the "Trident-16" jackup drilling rig owned by "Transocean". The rig is currently operating in the Gulf of Thailand and will be towed to the Hong Fah drilling location to commence drilling for BSP on February 25, 2005.
The Hong Fah-prospect will take approximately 16 days to drill. This well is a follow-up drilling location to the Shell Hong Fah-A01 well drilled in 1991 which had significant oil shows and 100 meters of gross pay. It is also within 10 miles of the proven oil accumulation Nang Nuan that was successfully produced by Shell. The Hong Fah well is an appraisal of an existing discovery.
Following the drilling and possible testing of Hong Fah, the rig will be moved to the Khun Thong location approximately 10 miles to the north. The three horizons targeted by Khun Thong have a similar oil-target size as Hong Fah. Both drilling locations are based on recently acquired 3D-seimic information which significantly reduces the drilling risk. The Company is excited about the prospect of testing the hydrocarbon potential of the concession after an investment of over $5 million and some seven years of work by BSP and its predecessor, Devon Energy Corporation.
In addition to the upcoming wells, the exploration team of BSP has also identified other prospects of world-class size that are targeted for testing towards the end of the year.
Based in Vancouver, Canada, and with offices in New Orleans, Louisiana, International PetroReal Oil Corporation is an oil and gas exploration and development company whose primary focus has been the acquisition of producing properties with the aim of building a premier upstream production company.
Source: Business Wire