Canamens to explore offshore Morocco

Offshore staff

RABAT, Morocco -- Canamens has signed a suite of agreements, including an association contract, a petroleum agreement, a reconnaissance contract, along with associated permits, and a license with Morocco's Office National Hydrocarbures et des Mines (ONHYM).

The first agreement is a reconnaissance contract covering the Essaouira shallow offshore area. Canamens will reprocess and acquire new 2D seismic, following evaluation prospectivity, and decide whether to convert the license to an exploration permit.

The association contract and petroleum agreement govern four exploration permits in the Essaouira deep offshore area. Under these agreements, Canamens will reprocess and acquire new 2D seismic data. Following evaluation, the company will have the option to extend into a second period with an accompanying 3D seismic acquisition and drilling commitment.

Under these agreements, which cover an area of over 11,000 sq km (4,247 sq mi), Canamens will be the operator with a 75% equity stake in both the reconnaissance license and the exploration permits, with the remaining equity held by ONHYM. Canamens will bear 100% of the costs up until the development stage.

12/17/2008