Flying the flag: in Morocco
Rabat upgrades Zag permit
Morocco has upgraded San Leon Energy's reconnaissance permit at Zag to an exploration licence.
In a statement, San Leon and partners Island Oil & Gas and Longreach Oil & Gas said the move comes after a deal was signed on 18 June in Rabat and approved for release by Morocco's Office National des Hydrocarbures et des Mines (ONHYM) on 17 July.
San Leon said a high resolution aeromagnetic survey completed earlier this year has been integrated with surface and subsurface data, indicates some structures - including a 60 kilometre anticline - with the potential for hydrocarbon reserves.
The revamped agreement is valid for up to eight years and covers a work programme which includes seismic work and geological studies within the first 30 months.
San Leon operates the Zag licence with a 37.5% stake, Island has a 15% interest, and ONHYM has 25%. The other partner is Longreach Oil and Gas with 22.5%. ONHYM’s 25% interest is free carried until a discovery is made and the development work gets under way.