Antrim Energy signs agreements for P-Z PSA in Tanzania

Antrim Energy Inc., an oil and gas exploration and production company, has signed two agreements which are expected to lead to the resumption of exploration activities on the production sharing agreement for the Pemba Zanzibar exploration license, or P-Z PSA, offshore and onshore Tanzania.
Antrim Energy has signed an agreement with Ras Al Khaimah Gas Tanzania Limited (RAK Gas) and NOR Energy AS (NOR) whereby Antrim Energy has replaced its previous right to be carried through the pre-drilling exploration phase of the P-Z PSA with a 20% carried interest through the pre-drilling phase and an additional 10% right to participate in the P-Z PSA to be exercised up to 180 days following receipt of the initial drilling results.
The carried interests (up to 30%) are to be repaid from future production. Antrim Energy's previous option was acquired in 2006 as part of a sale of several assets to NOR, including its wholly owned subsidiary Antrim Resources (Tanzania) Limited.
Concurrent with this agreement, RAK Gas and NOR have entered into an agreement that provides RAK Gas with the option to acquire control of the P-Z PSA. As part of this agreement, RAK Gas has undertaken to re-negotiate the P-Z PSA exploration work program with Tanzania Petroleum Development Corporation ("TPDC") and to secure access rights to the license area from the relevant authorities.
The license, which covers 3.5 million acres (14,060 sqkm), is in a prospective oil and gas region that has recently seen significant exploration activity. Licenses on trend are held by Shell, Exxon Mobil, Statoil, Petrobras, Ophir Energy, British Gas and Tullow Oil.
Stephen Greer, President and CEO of Antrim Energy, commented: "We are very encouraged by the entry of RAK Gas into this licence. The Pemba-Zanzibar block has enormous exploration potential, and the area has recently been attracting considerable interest from major petroleum companies."
Source: Press release