Eritrean MOU null and void
Sydney, Jan 04, 2005 (RWE via COMTEX) -- (RWE
Australian Business News)
Pancontinental Oil & Gas NL and joint venture partners, Afrex Ltd and Hardman
Resources Ltd today announced a memorandum of understanding negotiated with the
Eritrean Ministry of Energy and Mines for the offshore Red Sea Massawa Block had
been declared null and void.
The MOU was initially for a six-month period
commencing on December 24 2003.
"A number of extensions have been
granted since that date to enable continued negotiations with the ministry for
a Petroleum Sharing Contract (PSC).
"The final draft of the PSC was
submitted to cabinet for ratification," Pancontinental said.
"Notification has now been received from
the ministry that the MOU and any other documents relating to the Massawa Block
have been declared null and void," the company said.
Afrex Ltd, as operator of the joint venture,
is now seeking discussions with the Eritrean authorities for an explanation and
clarification of the situation.
The announcement was made after the close of
Shares in Pancontinental today rose 0.2c to
9.5c and Hardman 2c to $1.59.
Today's announcement follows a report last
September from Sub-Sahara Resources NL that its exploration activities in
Eritrea had been suspended after a directive from the minister of energy and
"Sub-Sahara and all other foreign
companies conducting exploration in Eritrea received written notice from the
minister to cease all exploration activities immediately," directors said
at the time, adding that they had sought an explanation from the minister.
Sub-Sahara told its annual meeting on
November 30 that there had been no futher correspondence from the government. Freerealtime.com