"This represents the achievement of a critical objective in our quest to secure final approval of our exploration and development contracts involving Infinity's oil and gas concessions offshore Nicaragua in the Caribbean Sea," said Infinity Energy chief executive officer Stanton E Ross.

The concessions cover an area of about 1.4 million acres, said the company in a statement.

The contracts must now go to the national government in Managua for its final review and signature by Nicaragua's President.

The company continues to seek the approval by the regional government council of the Autonomous Region of the Northern Atlantic of its contracts relating to the concession under the jurisdiction of the RAAN.

The authorities of the RAAN have asked the company to make presentations to its communities, similar to those recently conducted within the RAAS, after which the company remains hopeful that the RAAN will vote to approve Infinity's project.

Due to assurances received from Nicaragua's President and the cooperation and support of ProNicaragua (the Nicaraguan Investment Promotion Agency) and the Ministry of Energy and Mines, the company remains hopeful this process will soon be underway.

"Infinity Energy Resources is prepared to move forward immediately with environmental studies, seismic and other exploratory activities once permission is granted by the Nicaraguan government," said Ross.

The company said it believed that the Perlas and Tyra concession blocks potentially contain substantial quantities of oil beneath waters that range in depth from 100 feet to 300 feet.

A number of international oil and gas companies have already contacted Infinity regarding their potential interest in partnering to develop the concession.

Published: 07 July 2008 23:17 GMT  | Last updated: 07 July 2008 23:17 GMT