The agreement marks the first official venture between KMG EP and BG Group under the terms and conditions of the upstream cooperation agreement signed in December 2008.
BG will retain the remaining interests and will continue to operate the license on behalf of the partners.
The license carries an commitment to drill one further exploration well and the partners plan to drill this well in 2011.
The transfer of an interest meets terms and conditions of the cooperation agreement signed in 2008.
KMG EP farm-in financial risks including drilling costs and other project liabilities at the HC pre-discovery stage are estimated at $25m-30m.
The White Bear prospect is located close to the BG Group’s existing Everest and Armada producing assets.
