Novus Australia Energy Co. Pty. Ltd., Sydney, and partners were awarded an exploration license for Block 17 in Oman, which covers 3,200 sq km of onshore and offshore territory.
The block lies alongside the offshore Block 8 tract, which contains the Bukha field, for which Novus has signed a new contract for sale of LPG to a company in Ras al Khaymah, UAE.
Block 17 interest holders are Novus (40%), Atlantis Holding Norway AS (50%), and the Eagle Energy (Oman) Ltd. unit of Heritage Oil Corp., Calgary (10%).
Heritage said the concession comprises two areas: the onshore Musandam Peninsula and surrounding offshore territory within a 3-mile limit; and the onshore Madha area.
The Block 17 partners committed to acquiring 220 line-km of 2D seismic data and reprocessing almost 1,200 line-km of existing data, as well as undertaking various technical studies during the first 3-year exploration term. Depending on the results of this work, the partners could drill a well during the first 3 years, at their own discretion.
The group has "...identified a number of highly prospective structures within Block 17, which appear analogous to the nearby Bukha gas-condensate field and West Bukha/Hengam discovery, both on Block 8 (see map). The partners initially intend to focus their activities on further defining these prospects."
Meanwhile, Bukha field production amounts to about 3,500 b/d of condensate and LPG and 40 MMcfd of natural gas. Interest holders are: operator Novus (40%), Heritage (10%), and LG International of Korea (50%).
Heritage said the new sales contract will bring the group an income 12% higher than the previous LPG sales contract, which was with a company based in Dubai.
