DNO International ASA, the Norwegian oil and gas company, today announced the completion of the farm-in by its wholly-owned subsidiary DNO Tunisia AS to the Sfax Offshore Exploration Permit and the Ras El Besh Concession in the Republic of Tunisia, pursuant to the previously announced agreement with Eurogas International Inc. and Atlas Petroleum Exploration Worldwide Ltd.
DNO Tunisia AS now holds an 87.5 percent participating (100 percent paying) interest in the permit and the concession, in respect of which it has assumed operatorship and a significant share of the existing cost pool.
The Sfax Offshore Exploration Permit and the Ras El Besh Concession are located in the prolific Gulf of Gabes and cover 3,296 square kilometres, mostly offshore in shallow waters. To date, three discoveries have been made with combined gross recoverable resources ranging between 35 million to 60 million barrels of oil. These assets hold significant exploration potential with 29 identified prospects which in the aggregate are estimated to contain between 500 million to 700 million barrels of oil of gross unrisked resources.
“Having finalised the transaction and received government approvals we will proceed now with a fast track exploration and development program designed to materially expand our footprint in Tunisia,” said Bijan Mossavar-Rahmani, DNO International’s Executive Chairman.
The company also holds interests in the Hammamet Exploration Permit and the Fkirine Prospecting Permit, both offshore Tunisia.
Press Release, January 20, 2014