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Malta farm in
Malta farm in.
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[{"type":"text","content":"\n Global Petroleum Ltd\n23 June 2006\n\n\n German oil and gas company RWE Dea to farm-in to\n\n Global Petroleum's Malta blocks\n\nThe German oil and gas company RWE Dea AG farmed in to Global Petroleum's\noffshore exploration blocks in Malta. As a result Global's share of the costs of\nseismic work and potentially an exploration well will be carried by RWE Dea.\n\nAnnouncing the farm-in agreement today, Global Chairman Dr John Armstrong said\nthat RWE Dea is a welcome party in the joint venture. 'This farm-in is very good\nnews for Global shareholders,' he said. 'RWE Dea is an international oil and gas\nproducer and explorer and is part of the RWE Group, one of Europe's largest\ncompanies. It is active in exploration and production as operator and non\noperating partner in Germany, the UK, Norway, Denmark, Egypt, Dubai and\nKazakhstan, and holds exploration licences in Algeria, Libya and Poland. In\n2005, RWE Dea's oil and gas production was approximately 120,000 boe per day,'\n\nUnder the farm-in agreement, RWE Dea earns a 20% interest in the Exploration\nStudy Agreement for Global's Malta Blocks 4 and 5 of Area 3, with Global\nretaining 80%. RWE Dea plans to undertake seismic studies in the 2nd half of\n2006 in the blocks at RWE Dea's cost.\n\nRWE Dea and Global have the option, to be exercised during the term of the\nExploration Study Agreement, to enter into a Production Sharing Contract. The\nminimum work commitment during the first two year exploration period under this\nProduction Sharing Contract is the drilling of one well. By carrying Global's\nshare of the cost of that well on a dry hole basis, RWE Dea will earn an\nadditional 50% in the venture with Global retaining 30% (including a 3% interest\non behalf of Envoi Limited, the UK marketing agency that assisted Global in the\nfarm-in process).\n\nDr Armstrong said that the Malta blocks are located in the southern region of\nthe Ragusa Trough which contains the Vega oil field in the Italian part of the\nbasin and which extends south from Sicily in the Mediterranean Sea. The blocks\ncontain several leads which will be the principal focus of the planned seismic\nprogram with RWE Dea.\n\nThe Government of Malta has extended the Exploration Study Agreement for a\nfurther six months until 31 December 2006 allowing the planned seismic work\nprogram which will be operated b...