The International Pursuit Corporation (Pursuit) announced that it has entered into a letter of intent to acquire a five percent interest in a joint venture which holds a seven-year exploration lease of the East Wadi Araba Concession in Egypt. Under the terms of the agreement, Pursuit may, at its option, increase its participation in the joint venture to 10 percent, confirmed a press release.
The concession was earlier held by British Gas (BG), which spent $10 million in seismic studies. Seismic analysis by British Gas established 12 high-potential drilling targets, each with the potential of 50 to 100 million barrels. BG had relinquished the field in 1998 when oil was dropping down to $10 per barrel.
Pursuit also announced a proposed private placement of up to 60,000,000 of its common shares at a price of $0.02 per share, anticipated to be completed around March 4, 2002. A portion of the proceeds of the offering will be used to acquire the interest in the East Wadi Araba Concession. The completion of the offering is conditional upon receipt of regulatory and shareholder approval.
The East Wadi Araba concession is located in the Gulf of Suez Sedimentary Rift Basin, which contains five major fields, that together account for the majority of Egypt's oil production. These five fields have produced more than five billion barrels of oil and have a reported three billion barrels of proved reserves. The Gulf has another 35 fields in production. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
