ADDIS ABABA, Ethiopia, January 9, 2012 /PRNewswire/ --
SouthWest Energy is pleased to announce that today it signed a production sharing agreement (PSA) with the Ethiopian government for exploration of oil and gas in the Gambella Region in south-western Ethiopia.
The Gambella PSA gives SouthWest Energy the right to conduct exploration operations on a block that covers approximately 17,000km, half the size of Belgium, and is adjacent to the Southern Sudan border. A field across the border has 900 million barrels of proven reserves. This proven discovery and geology is called the Sobat High and it extends into the Gambella concession.
The terms of the Gambella PSA include an obligation to complete 4,000 km of FTG surveys and 500 line km of 2D seismic. These commitment activities are intended to occur during the first exploration period, which is scheduled to last four years.
The Gambella PSA strengthens SouthWest Energy's existing presence in Ethiopia, which consists of 100% working interest and operatorship of three blocks in the Ogaden Basin. The addition of the Gambella concession makes SouthWest Energy one of the largest acreage holders in East Africa.
"This is an excellent opportunity for SouthWest Energy to expand its Ethiopian exploration and production activities," said Tewodros Ashenafi, Chairman and CEO of SouthWest Energy. "Due to its proximity to the oil production and reserves in South Sudan and the potential for new oil and gas infrastructure in the region, Gambella is an area of increasing strategic interest for international oil and gas companies."
"SouthWest Energy has done a very good job on its existing Blocks 9A, 9 & 13, and we expect SouthWest Energy to do the same on the Gambella concession," said Dr. Ketsela Tadesse, Head of Petroleum Licensing & Administration of the Ethiopian Ministry of Mines.
About SouthWest Energy
SouthWest Energy (HK) Ltd. was formed in 2005 and is the only Ethiopian-owned company to successfully obtain an energy concession in Ethiopia. SouthWest Energy is currently developing properties in the Ogaden Basin under PSAs it entered into in 2005 and 2007. Further information about SouthWest Energy is available at http://www.sw-oil-gas.com.
SOURCE SouthWest Energy