Canamens to Search for Oil in Morocco
The company says the first agreement is a Reconnaissance Contract in respect of the “Essaouira Shallow Offshore” area, located in shallow water (<500 meters). Canamens will reprocess and acquire new 2D seismic and following evaluation prospectivity, decide whether to convert the license to an exploration permit, or elect not to proceed.
The second and third agreements are an Association Contract and Petroleum Agreement which govern four Exploration Permits for a similar location but in deeper water (generally over 500 meters), the “Essaouira Deep Offshore” area. Under these agreements Canamens will reprocess and acquire new 2D seismic and, following evaluation, have the option to extend into a second period with an accompanying 3D seismic and drilling commitment, or drop without further obligation.
Under these agreements, which cover an area of over 11,000 square kilometers, Canamens will be the operator with a 75% equity stake in both the Reconnaissance License and the Exploration Permits, with the remaining equity held by ONHYM. Canamens will bear 100% of the costs up until the development stage. The agreements represent Canamens’ first investment in Morocco.