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Friday, 29 August, 2008, 18:20 GMT | more prices >>

Arc gets green light in Yemen

By Upstream staff

Perth-based explorer Arc Energy has overcome the final hurdle in Yemen as the government has ratified two onshore blocks giving the green light for exploration activity to start.

The blocks were awarded to ARC as part of an international consortium led by Oil Search in the 2005 international bid round.

ARC holds a 21.25% working interest in Block 7 that lies in the Shabwah basin and Block 74 in the Masila basin.

“The blocks are located in areas with proven petroleum systems and are considered highly prospective for oil,” Roc said in a statement today.

The work programme for both blocks during the initial three year period will comprise reprocessing of existing data, shooting new seismic data and drilling at least seven exploration wells.

Arc’s partners in the blocks include Oil Search on 34%, Kufpec with 21.25%, Yemen General Corporation for Oil & Gas on 15% and Adelphi Energy with a slender 8.50%.