Manas has agreed to a turn-key rate of $3,500/km, with no stand-by fees, for an aggregate total of $1.05m payable according to a specific schedule.
The company owns 84% of the rights to blocks 13 and 14, 10% of which is held in trust for a Mongolian oil and gas company, subject to regulatory approval and negotiation.
The two blocks cover an aggregate of over 20,000sqkm, or almost five million acres, of land located on Mongolia’s southern border.
The production contracts provide for a five-year exploration period with two optional six-month extensions from an effective date of 21 April 2009 and a 20-year exploitation period with two five-year extensions.
The remaining 16% interest in these blocks is held by two investor groups.
Manas is an international oil and gas company with primary focus on exploration and development in South-Eastern Europe, Central Asia and Mongolia.
