Operational Update
December 02 2003 - 5:07AM
UK Regulatory
RNS Number:7324S
Fusion Oil & Gas PLC
02 December 2003
Fusion Oil & Gas plc
("Fusion" or "the Company")
Operational Update
Ntem Deepwater Exploration Licence Cameroon
Fusion announces that its operating subsidiary, Fusion Cameroon Limited, has
today signed an agreement with Woodside Energy Ltd ("Woodside") whereby Woodside
will be granted an exclusive option to acquire an interest in Fusion's Cameroon
Ntem deepwater exploration licence which covers an area of approximately 2,300
square kilometres in the deepwater of the Douala/Rio Muni Basin.
As a result of the agreement Woodside will have the exclusive right for a period
of three months to acquire an 80% interest in the Ntem licence.
In the event that Woodside elects to acquire the interest it will earn its stake
by refunding past costs associated with a 1,500 square kilometre 3D seismic
survey acquired in 2002 and will fund 100% of the cost of the first well. On
completion of the first exploration well Woodside will have the option to fund a
second exploration well or to withdraw from the licence. Once Woodside has
drilled a second exploration well its farmin obligations will have been
fulfilled.
The agreement is subject to the normal approval of the appropriate Government
Ministries and regulatory authorities and will terminate in the event of a
change of control in Fusion.
Fusion's Managing Director, Alan Stein commented:
"We are delighted to have an opportunity to enter into a new venture with
Woodside following the success of our projects in offshore Mauritania where they
are the Operator."
02 December 2003
Enquiries
Fusion Oil & Gas plc
Peter Dolan, Chairman Tel: 020 8891 3252
Email: pdolan@fusionoil.co.uk
Alan Stein, Managing Director Tel: 00 61 89226 3011
Email: astein@fusionoil.com.au
College Hill Associates Tel: 020 7457 2020
James Henderson Email: james.henderson@collegehill.com
Phil Wilson-Brown Email: phil.wilson-brown@collegehill.com
Mr Williams and Mr Levison are appointees of Westmount Resources Limited which
has been acquired by Sterling Energy Plc. They have not participated in the
Board's deliberations in relation to this press release.
This information is provided by RNS
The company news service from the London Stock Exchange
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