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re: er Headline News
Pancon reply to ASX query: update on Eritrea, Kenya
By RWE Australian Business News, 22 Jun 2004 Sydney - Tuesday - June 22: (RWE) - Pancontinental Oil & Gas NL told the stock exchange today that recent buying in its shares might be explained by a morning newspaper article claiming the Eritrean Government was set to sign a production sharing contract with the company for its Massawa Block in the Red Sea. The company said a memorandum of understanding for this area between the Eritrean Government and a joint venture involving Pancontinental, Afrex Ltd and Hardman Resources Ltd was due to expire on June 23 and had been extended until July 23 to allow the parties to finalise terms of a PSC.
"It is planned that this will occur during the early part of July and at which time the PSC will be executed and granted," Pancontinental said.
The company also noted that following the withdrawal of Woodside Petroleum Ltd from the Kenya project, the Afrex/Pancontinental joint venture consultants had been conducting a review of the 2D seismic data.
A report on this review is expected within the next seven days. Representatives of both companies will meet the Kenyan Mines Department "to discuss the way forward for the project", at the beginning of July, prior to the planned meeting in Eritrea.
Shares in Pancontinental closed up 1.3c to 8.7c today(ahead of the announcement) after trading as low as 5.6c last Thursday.


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