The buyout follows ShaMaran Petroleum entering into a subscription agreement and a shareholders agreement with Aspect Energy International.
The Kurdistan Regional Government of Iraq (KRG) and GEP are parties to a production sharing contract (PSC) dated 10 November 2007 in respect of the Atrush Block Oil and Gas Exploration Area located in the Kurdistan Region of Iraq (Atrush Block).
GEP currently owns 80% of the rights and obligations of the contractor in the PSC and the contract area and the KRG owns the remaining 20%.
The 2D seismic data over the Atrush Block indicates that the Atrush structure is similar to the Shaikan structure.
The Atrush Block is also adjacent to and on trend with the recent Bijeel oil discovery to the east, operated by Kalegran Limited (MOL).
The Atrush 1 exploration well location has been approved and the well is expected to spud in September 2010.
The well (planned depth of 3100m) is prognosed to encounter the same reservoir sections as Shaikan and will also test the structural extension of the Shaikan discovery into the Atrush block as indicated from the 2D seismic data.
Of the ten expected target reservoirs in Atrush 1, nine were confirmed to be oil-bearing in Shaikan, while the Lower Kurra Chine encountered high pressure gas.
