Jura Energy Corporation - Farmout Transaction

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[{"type":"text","content":"\n\n\n\nISLAMABAD, PAKISTAN, Sept. 30 /CNW/ - Gulf Petroleum Exploration\nInternational ("GPX"), Kuwait, and Jura Energy Corporation ("Jura"), Canada,\nare pleased to announce the following:\n\n\nGPX, Petroleum Exploration (Pvt) Limited ("PEL"), and Jura have entered\ninto an agreement in respect of six exploration concessions in Pakistan.\nPursuant to the agreement, Jura and PEL will each assign a 12.5% interest in\nthe following concessions to GPX: Badin IV North, Badin IV South, Kandra\n(excluding Sui Main Limestone development), Salam, Mirpur Mathelo, and Karsal.\nThe agreement is subject to certain conditions, including the execution of\ndefinitive assignment agreements by all parties and the Government of\nPakistan. In the event such conditions are fulfilled, the assignments will\nclose with an effective date of April 1, 2008.\n\n\nMr. Abdullatif Al-Tourah, the Chairman of GPX said, "GPX has targeted\nPakistan as a focus country for investment and we are delighted to have this\nopportunity to participate in a material exploration well program. We were not\nonly attracted by the acreage, but also the very strong joint venture\npartnership of PEL and Jura. We hope that this will be the first of many\nprojects for GPX in Pakistan."\n\n\nFollowing the closing of the transaction, the parties' working interests\nin the relevant blocks will be as follows:\n\n\n Government\n Jura PEL GPX Holdings Ltd.\n\nBadin IV North 37.5% 37.5% 25.0% -\n\nBadin IV South 37.5% 37.5% 25.0% -\n\nKandra (excluding SML) 35.0% 35.0% 25.0% 5%(x)\n\nSalam 37.5% 37.5% 25.0% -\n\nMirpur Mathelo 35.0% 35.0% 25.0% 5%(x)\n\nKarsal 37.5% 37.5% 25.0% -\n\n\n(x) subject to the right to acquire an additional 20% interest pro rata\n from the other joint venture partners upon declaration of a\n commercial discovery.\n\n\nUnder the terms of the agreement, GPX's carry obligations to the joint\nventure are to pay (i) 66.67% of the first US$6 million in expenditures to\ndrill the first 4 exploration wells of the work program in the blocks, (ii)\n58.33% of the first US$6 million in expenditures to drill the next 5\nexploration wells of the program in the blocks, and (iii) 50% of the first\nUS$6 million in expenditures to drill an additional 2 wells, contingent on\nthere being at least 4 commercial discoveries from the first 9 we...

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