Kulczyk Oil Ventures is pleased to announce the spud of Itheria-1, the first exploration well being drilled by KOV and its joint venture partners on Block 9, Syria.
Pursuant to a farmout agreement announced by KOV on 6 September 2010, MENA Hydrocarbons (Syria) Ltd., an indirect wholly-owned subsidiary of MENA Hydrocarbons Inc. (?MENA?) will fund 60% of the costs for the drilling of Itheria-1. Accordingly, the costs of drilling Itheria-1 will be shared as follows: MENA: 60%, Triton Petroleum Pte Ltd.: 15%, Kulczyk Oil: 20% and Agri (AAE) 5%
In Syria, KOV holds a participating interest of 50% in the Syria Block 9 production sharing contract which provides the right to explore for and, upon fulfilment of certain conditions, to produce oil and gas from Block 9, a 10,032 square kilometre (2.48 million acre) area in northwest Syria. The Company has an agreement to assign a 5% ownership interest to a third party which is subject to the approval of Syrian authorities, and which, if approved, would leave the Company with a remaining effective interest of 45% in Syria Block 9.
AAE Price at posting:
0.9¢ Sentiment: ST Buy Disclosure: Held
