Afrex Ltd. has signed a memorandum of understanding (MOU) with the Eritrea government over the 11,550 sq km Massawa block offshore Eritrea, Red Sea, partner Hardman Resources said.
The MOU covers a production sharing contract (PSC) over the Massawa block in Eritrean territorial waters. The block is in a Tertiary aged salt basin. Surface oil seeps have been identified near the Dahlak Islands.
The partners will re-map the existing seismic data, then the joint venture will consider inviting farminees to drill exploration wells.
Afrex Ltd. operates the well with 40% interest, Pancontinental Oil and Gas 30%, and Hardman Resources 30%.