Syrian gateway: for Canada's Loon Energy
Loon swoops in Syria
Calgary-based Loon Energy has signed an exploration and production-sharing agreement with the Syrian government covering Block 9, in the north-west of the country.
Under the deal with Syria’s Ministry of Petroleum and Mineral Resources and the state-owned Syrian Petroleum Company (SPC), Loon has an exclusive right to explore and develop hydrocarbon deposits on the 10,000-square-kilometre block.
The block lies on the northern edge of the Horns basin, which also includes the Palmyra, Cherrife Da and Ash Shaer fields. However, the block itself is largely unexplored, Loon said, with only two exploration wells being drilled.
Under the four-year deal, Loon has committed to shooting 600 kilometres of 2D seismic and drill two exploration wells. The agreement can be extended by up to nine years.
Loon will operate the block with a 100% working interest. Ansco has the right to buy into a 5% stake in the block subject to the approval of the Ministry of Petroleum and the SPC.
The deal comes after more than a year of negotiations. Loon entered exclusive negotiations over the block in June last year.