Loon cements Damascus exploration deal

04 December 2007
Canada’s Loon Energy has received government approval of an exploration and production sharing agreement (EPSA) with the Petroleum & Mineral Resources Ministry for the 10,100-square-kilometre block 9 in the northwest.

Loon started negotiations with Syria in June, 2006 for a 25-year deal but the final terms have changed considerably (MEED 16:6:06).

The company now has a first phase exploration period of four years, in which it expects to acquire 600km of 2D seismic survey and drill two exploration wells.

The exploration period can be extended for up to nine years in phases by performing additional work on an agreed basis. Block 9 is located at the northern edge of the Homs basin, which contains the large Palmyra, Cherrife Da and Ash Shaer fields.

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