RH Petrogas gets a foot in the door in MyanmarCompany News // December 12, 2012
RH Petrogas Limited (RHP), which is engaged mainly in the business of exploration, development and production of oil and gas resources, has announced that the group had executed a farm-in option agreement with Rimbunan Petrogas Limited (RPL), in which the group was granted a seismic option to farm-in and acquire 50 per cent of RPL’s participating interest in the Production Sharing Contract (PSC) for Block M-1 located offshore Myanmar.
RPL and UNOG Pte Ltd signed the PSC with Myanmar Oil and Gas Enterprise (“MOGE”), a state-owned corporation of the Union of Myanmar on 9 March 2007.
RPL is the operator of the PSC with a 93 per cent participating interest, with UNOG Pte Ltd holding the remaining 7 per cent.
In an extension of the exploration period under the PSC granted by MOGE, RPL is required to acquire a new 300-500 line kilometres of 2D seismic by 7 June 2013.
Under the Seismic Option Agreement, the group will pay for 50 per cent of RPL’s share of the cost of the 2D seismic programme, estimated to be US$3.6 million. No upfront consideration is payable on signing of the Seismic Option Agreement, which is exercisable up to 7 June 2013.
The Group will review the results of the 2D programme to determine whether to exercise the seismic option.