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Kerkouane Exploration Permit
Chorbane Prospecting Permit
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VANCOUVER, Aug. 23 /CNW/ - Grove Energy Limited ("Company")(TSX-V &
AIM: GRV), the oil and gas exploration company with assets in Europe and the
Mediterranean Margin, advises that it has received Ministerial ratification
and approval for the acquisition of two permits in Tunisia - the 6,720 square
kilometre Kerkouane offshore exploration permit and the 2,428 square kilometre
Chorbane onshore prospecting permit (the "Permits").
The offshore-onshore Kerkouane exploration permit is contiguous with
Grove's 100 per cent owned Pantelleria permits in Italian waters. The
Kerkouane Permit contains the undeveloped Dougga gas condensate discovery made
by Shell in the early 1980's and lies adjacent to the Tazerka oilfield. Grove
intends to evaluate this discovery and its development potential.
This strategic acquisition has increased Grove's "Sicily Channel Acreage"
to an area of more than 8,000 square kilometers, resulting in one of the
larger acreage positions in the region. The oil potential of the Pantelleria
acreage was identified from Grove's 2005, 750 km 2D seismic program over the
Pantelleria Concession, whereby a number of material prospects were
identified, the largest being the Sambuca Prospect with a prospective resource
best estimate of 230 Million Barrels.
Grove will be seeking farm in partners for the Sicily Channel Acreage now
that the Permits have been ratified and approved by the authorities. In
parallel Grove is in negotiations with drilling rig providers and expects to
reach an agreement with a drilling contractor during the coming quarter. It
was determined that farming out this acreage without a firm rig schedule was
not in the best interest of Grove.
The Chorbane prospecting permit located in Tunisia's central coastal area
lies immediately west of several producing onshore oil fields and is on trend
with the producing offshore field Ashtart which contains 1 billion barrels of
oil in place.
Grove will immediately start field operations with a GORE SORBER surface
geochemistry survey. The results of this survey will enable Grove to
prioritize prospects and to plan the 200 km 2D seismic program which will
follow in Q4 of 2006.
Grove's work commitments are:
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- Kerkouane Permit - to drill one well to a depth of 2,700m.
- Chorbane Permit - acquire 200 kilometres of 2D seismic
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Grove is the contractor under the Permits and operates on behalf of
Enterprise Tunisienne d'ActivitDes Petrolieres ("ETAP"). 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.
Grove has provided the Tunisian authorities with a US$1.5 million bank
guarantee in respect of the Kerkouane permit and a US$0.5 million bank
guarantee in respect of the Chorbane permit. The guarantees will be released
as work commitments are fulfilled.
Wolfgang Zimmer, President, stated: "I am very pleased that we could
obtain governmental approval and secure this highly prospective acreage for
Grove. We have prepared for our initial work programs and will start field
operations shortly."
Grove acquired these Permits because of their excellent locations- near
existing oil and gas fields in proven hydrocarbon producing basins - along
with Tunisia's favourable fiscal and permitting regimes. These factors make
Tunisia one of the best places to explore for and produce oil and gas in North
Africa."
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GROVE ENERGY LIMITED
Per "Glenn Whiddon"
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GLENN WHIDDON, CEO
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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 in 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.
