discoveries near fuschia

MAAMOURA DISCOVERIES


In 1997, Agip drilled two exploration wells at the onshore Maamoura permit and the offshore Enfida permit. In 1996, Agip made a small oil discovery offshore in the Gulf of Hammamet. In January 1998 Agip's Baraka-1 wildcat in the Enfida block in the Gulf of Hammamet tested 4,353 b/d of 43 deg.

In 1988 Agip's Maamoura-1 exploration well tested 2,880 b/d of 38 deg. API oil. A second well, drilled 15-18 km off the coast near Hammamet and completed in February 1988, yielded 5,000 b/d on tests. In October 1990 the 148-sq km perimetre including the Maamoura find was turned into a 30-year concession granted to Agip, 49%, with ETAP holding 51%.


FROM STORM VENTURE REPORT

Hammamet Offshore
Additionally, Storm Ventures International has 50% interest in Hammamet Offshore Exploration Block with over 1.1 MM acres in the Pelagian Basin offshore Tunisia.

The block contains the previously developed Tazerka oilfield and is offset by eight proven oil discoveries. The Tunisian authorities granted the block to SVI on June 2005 for a period of 5 years starting September 13, 2005, under favorable fiscal terms and a relatively low work commitment consisting of one exploration well and 200 km2 of 3D seismic.

We are evaluating the potential reactivation of the Tazerka field including a potential extension to the south. In 2007 we shot a 600 square km of 3D seismic to evaluate large untested structures previously recognized on the block and high-grade the most prospective test well location on the block that should be drilled in 2009. Storm has farmed down our ownership position in the block and we will pay 10% of the well cost and retain a 50% interest.

In the Gulf of Hammamett the publication of our purchase of 66% of the Cosmos discovery and 100% of Yasmin was gazetted, which represents the final stage of approval, and the documentation to facilitate the transfer of the last one third at Cosmos to Storm was submitted. We have received expressions of interest in acquiring the one third interest we are divesting and will work to initially close the acquisition, and also the divestment, over the balance of the year. We have met with the Tunisian authorities on several occasions to insure alignment of our technical position to facilitate a smooth approval of the Cosmos field development plan which we hope to submit before the end of July. Subject to successful completion of our private placement we will order several long lead items in support of a fall 2009 drilling campaign in August of this year.

We expect to finalise an initial exploratory well location on the Hammamett Permit by fall 2008 and hope to drill it no later than fall 2009.

We had previously announced the selection of a contractor for an FPSO conversion for the Cosmos project on the basis of a competitive tender that was followed by preparation of a firm bid proposal based off detailed functional specifications. Unfortunately the final bid was an unacceptably wide variance from the competitive tender and as a result we have begun a re-tender process with selected parties from our initial indications and remain confident we will land a solution before year end.