Artumas farms out offshore Mozambique interest

Artumas has completed the farm out of its Mnazi bay production sharing agreement (PSA) in the Rovuma block, offshore Mozambique.

Offshore staff

CALGARY, Canada -- Artumas has completed the farm out of its Mnazi bay production sharing agreement (PSA) in the Rovuma block, offshore Mozambique.

Under the agreement, Les Etablissements Maurel & Prom SA (M&P) will farm in 38.22% participating interest in all petroleum operations except for exploration operations where M&P will take up a 47.775% participating interest.

Cove Energy will farm in 16.38% and 20.475% respectively in petroleum operations and exploration operations. Artumas' participating interests will become 25.4% and 31.75% respectively in petroleum operations and exploration operations. Artumas' share of costs for a 200-sq km (77-sq mi) 3D seismic program and an exploration well will be carried by M&P and Cove. In the event that a 3D seismic program does not take place, M&P and Cove will carry Artumas for an alternative exploration or appraisal program of equal cost to the seismic program.

Artumas also may elect that M&P and Cove will fund the company’s share of either of two appraisal wells, in which case a further 5% participating interest in petroleum operations will be assigned to M&P and Cove per well.

M&P will assume operatorship of all petroleum operations under the PSA and fulfill the arrangements currently in place for the supply of gas to the Mnazi bay gas to electricity project.

09/18/2009

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