Oman

In an announcement by Oil Search, a Papua New Guinean company, the company stated it has entered into a sale and purchase agreement with Oman’s Petrogas E&P LLC, which will see the company farm-out a 30% stake in its 100% owned Area A in Egypt’s Eastern Desert.

If approved by the Egyptian authorities, the deal would come into effect retroactively as of September 1, 2007. Petrogas would then be obligated to a cash payment, the amount of which has not been disclosed. The company would also be liable for a 30% reimbursement of past costs.

In addition, to sweeten the deal, Oil Search's 70% share of costs will be carried for a three-well exploration program and a further two wells.

Peter Botten, Managing Director of Oil Search commented on the deal, "We are delighted to welcome Petrogas E&P into the Area A joint venture... It is an experienced operator of mature oil fields and we believe will add considerable value to our activities in the block.”