Fusion to appraise prospectivity of Saharawi offsh

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    Fusion to appraise prospectivity of Saharawi offshore

    (5/27/2002 - Oil & Gas International: Cairo) Fusion Oil & Gas has signed an exclusive technical cooperation agreement with the government of the Saharawi Arab Democratic Republic to carry out a detailed study and evaluation of the petroleum potential of its entire offshore area. The Saharawi ADR, better known as Western Sahara, is currently claimed by Morocco, but is its claim is not recognized, and the United Nations is seeking to conduct a referendum to establish sovereignty. The SADR is a fully recognized member of the African Union, however, and it is recognized internationally by 76 countries.

    Fusion's technical cooperation agreement covers the entire offshore territory of the SADR, some 210,000 sq km extending from the Mauritanian frontier in the south to Morocco and the Canary Islands (Spain) in the north. The study is expected to take up to 16 months to complete, whereupon Fusion will have the exclusive right to select a maximum of three exploration licenses for blocks that each cover as much as 20,000 sq km. The Saharawi government plans to award the licenses within six months after SADR is admitted to the United Nations.

    Alan Stein, managing director of Fusion, said, "The signing of this agreement with the Saharawi Arab Democratic Republic is an exciting milestone for Fusion and follows more than three years of consultation with the government concerning an collaborative assessment of the offshore oil and gas potential of the SADR. Although past exploration in the area has been limited, Fusion has the relevant regional experience and expertise that will allow it to conduct a full and detailed evaluation. A preliminary assessment of historical data suggests that a similar gross stratigraphic sequence to that encountered in Fusion's licenses to the south in offshore MAURITANIA, the Gambia, Senegal, and Guinea Bissau can be anticipated."

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