Loon originally announced its award of the exclusive right to negotiate a production sharing contract covering Block 9 in June 2006 and the recent ratification was the culmination of a lengthy process of negotiation that followed the original award. As part of the signing process, Loon has posted a bank guarantee of C$7.5 million.
Block 9 is a large and under-explored area of more than 10,000 sq km located on the northern edge of the hydrocarbon-producing Homs basin which contains the large Palmyra, Cherrife Da and Ash Shaer fields.
Under the terms of the agreement, Loon has a first phase exploration period of four years during which it has committed to acquire 600 kilometers of 2D seismic data and drill two exploration wells.
Loon has a 100% interest as the operator of Block 9.
