- Sicily Channel acreage increase to over 8,000 km(2)
- Kerkouane offshore-onshore block contiguous with existing Pantelleria
block GR15
- 12 prospects and leads identified from new and existing seismic
VANCOUVER, Jan. 13 /CNW/ - Grove Energy Limited ("Grove") (TSX-V &
AIM: GRV), the oil and gas exploration company with assets in Europe and the
Mediterranean Margin, is pleased to announce that it has agreed to acquire two
exploration permits in Tunisia - the 6,720 square kilometre Kerkouane offshore
block and the 2,428 square kilometre Chorbane onshore block (the "Permits").
Substantial work has been undertaken on the Permits and a number of exciting
prospects have been identified.
The offshore-onshore Kerkouane block is contiguous with Grove's 100 per
cent owned Pantelleria permits. Together, they represent an area of more than
8,000 square kilometres of world-class hydrocarbon acreage. The Kerkouane
block includes the Dougga gas condensate discovery that was made by Shell in
the early 1980's.
Chorbane is an onshore block in Tunisia's south eastern coastal area and
contains two leads which are adjacent to the Sid el Kilani oil field and on
trend with the Miskar and Hasdrubal gas field.
The Permits are to be acquired from Anschutz Overseas Tunisia Corporation
("Anschutz"), a private Colorado company, under a binding purchase and sale
agreement which is subject to standard conditions precedent to final closing.
Closing is expected shortly upon receipt of documentation from the Tunisian
authorities. Formal approval of the arrangement between Anschutz and Grove by
the Tunisian Department of Energy and the extension of the work programme is
expected shortly. The Permits are supported by a substantial exploration data
base built up by Anschutz over the years.
During the life of the Permits, Grove must drill one well within the
offshore Kerkouane block and acquire 250 kilometres of 2D seismic over the
onshore Chorbane block. Upon completion of these obligations, the Permits will
be converted into a production concession and an exploration permit
respectively. Grove's partner under the Permits will be Enterprise Tunisienne
d'ActivitDes Petrolieres ("ETAP").
As surety for this work programme Grove will provide the Tunisian
authorities with a bond which shall be released as work is carried out under
the work programmes. Terms of the bond are currently being negotiated. Under
the terms of the contracts with ETAP and the Tunisian Government, Grove will
not pay income taxes, customs duties or value added tax on oil and gas
equipment and is entitled to recover all of its capital and operating costs
and share of profit based on a formula that favours Grove during the cost
recovery period.
Glenn Whiddon, Chief Executive Officer, stated: "Over the past six months
we have pursued the Permits firstly to secure control over what we believe to
be very prospective acreage, and secondly to expand our position in the
region. Tunisia's geology and its fiscal and permitting regimes make it one of
the best places to explore for and produce oil and gas in North Africa."
GROVE ENERGY LIMITED
Per "Glenn Whiddon"
---------------
GLENN R. WHIDDON, CEO
Some of the statements contained in this release are forward-looking
statements. Forward looking statements include but are not limited to,
statements concerning estimates of recoverable hydrocarbons, expected
hydrocarbon prices, expected costs, statements relating to the continued
advancement of the Company's projects and other statements which are not
historical facts. When used in this document, and on other published
information of the Company, the words such as "could," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions are forward-
looking statements. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable, such statements
involve risk and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Various
factors could cause actual results to differ from these forward-looking
statements including the potential for the Company's projects to experience
technical or mechanical problems, geological conditions in the reservoir may
not result in a commercial level of oil and gas production, changes in product
prices and other risks not anticipated by the Company or disclosed in the
Company's published material. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks and
uncertainties.
Neither the TSX Venture Exchange nor the AIM Market operated by London
Stock Exchange plc approves nor disapproves of the information contained
herein.
The information contained herein does not constitute an offer of
securities for sale in the United States, United Kingdom, Canada, Japan
or Australia.
