Petro Novus AG
Petro Novus Concludes Agreement to Acquire 50% of Petroleum Exploration and Production Sharing Agreement in the Republic of Armenia
Petro Novus AG / Key word(s): Agreement Petro Novus Concludes Agreement to Acquire 50% of Petroleum Exploration and Production Sharing Agreement in the Republic of Armenia Agreement covers 14,000 sq. kilometres in Armenia's 'Central Depression' Petro Novus AG ('Petro Novus' or the 'Company') (Frankfurt Exchange: PN5) is pleased to announce that the Company has successfully completed a Joint Operating Agreement ('JOA') and Economic Interest Agreement ('EIA') that will make it a 50% partner in a Petroleum Exploration and Production Sharing Agreement ('PEPSA') for hydrocarbon exploration and production rights in central and southern Armenia. This acquisition by Petro Novus represents a 50% stake in an oil and gas property that covers approximately 14,000 square kilometres (3.5 million acres) in the Republic of Armenia. Petro Novus acquired the 50% holding from Blackstairs Energy PLC, Ireland, a private oil and gas exploration and development company, and Vangold Resources Ltd. (TSX.V: VAN), a public company listed on the TSX Venture exchange in Toronto, Canada. As parties to the JOA and the EIA, Blackstairs Energy PLC and Vangold Resources Ltd. will each retain a 25% share in the PEPSA. The PEPSA, which includes exploration blocks 4, 5 and 6 in Armenia's 'Central Depression', was signed on April 27th, 2007, by the Ministry of Energy (and Natural Resources), the Ministry of Environmental Protection, and Blackstairs Energy PLC, which has a regional office in the capital city of Yerevan and will continue to act as the project operator. Exploration blocks 4, 5 and 6 in Armenia's 'Central Depression' represent a significant interest and opportunity in one of the few remaining underexplored basins of the world. At present, Armenia does not produce a single barrel of oil or gas, even though it is bordered by Iran, Georgia, Azerbaijan and Turkey – four countries that produce millions of barrels of oil, and trillions of cubic feet of gas, annually. The Central Depression is estimated to contain a 5-7 km thick sedimentary section aged from Devonian to Recent; various geological and geophysical data indicate that a viable petroleum system is developed. In addition, Soviet and Armenian geologists have identified a large surface-outcrop bitumen deposit in Block 5; the existence of this large deposit and other widespread indications of oil and gas (seeps, gas shows and the presence of asphaltic oil) support the thesis that significant hydrocarbon generation has occurred within the Central Depression. Cameron King, CEO and Chairman of Petro Novus commented, 'Armenia is a new and exciting frontier for oil and gas exploration, as it represents a significant interest and opportunity in one of the few remaining underexplored basins of the world. The presence of multiple gas shows, seeps in numerous boreholes, and even a large surface-outcrop bitumen deposit, throughout the vast license area, is indicative of the opportunity that this project represents. We plan to continue to advance our exploration program with the goal of defining new, high-priority targets by utilizing modern geo-science techniques.' This agreement supersedes a previously announced Letter of Intent ('LOI')with Arvan Energy PLC ('Arvan'), effectively terminating the LOI with Arvan.
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