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OAO Novatek announced that it has acquired a 50% working interest in the concession agreement for oil and gas exploration and development at the El-Arish offshore block in Egypt from Tharwa Petroleum S.A.E. The remaining 50% working interest is held by Tharwa Petroleum S.A.E.
The offshore block, comprising an area of approximately 2,300 square kilometers, is located along the Mediterranean coast and is adjacent to the north coast of the Sinai. Half of the block lies at depths of up to 50 meters with the remaining area reaching depths of up to 500 meters.
The concession agreement provides for a minimum exploration period of four years which will include undertaking geophysical studies of the concession block as well as the drilling of two wells. Novatek will have the opportunity to extend the exploration period to nine years if preliminary results require further study. The concession agreement provides for a twenty year development period for each commercial discovery with a possible five year extension.
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