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Frontier signs Oman oil exploration deal

Wednesday, 10 Oct 2012 | 4:37 AM ET

DUBAI, Oct 10 (Reuters) - Frontier Resources International Plc has signed an exploration and production sharing agreement (EPSA) with the Omani government for a 100 percent interest in Oman's Block 38, Frontier said in a statement on Wednesday.

The EPSA runs for six years on the Mudayy Block, covering an area of 17,425 square kilometres in the Dhofar region of southwest Oman.

The block, which includes southern parts of the Rub Al Khali Basin, currently has had only three wells drilled and is considered prospective for oil and gas, Frontier said.

"Based on the evaluation of vintage seismic, well data and regional geologic studies Frontier is of the opinion that the Block contains an untested salt basin with exploration potentially analogous to the other proven salt basins of Oman," the company said.

The small oil and gas explorer said it would conduct geophysical and geological studies during the first three-year phase of the agreement, with well drilling to follow if merited.

Frontier is already looking for fuel onshore Namibia and Zambia, while its current production assets are all located in Texas, according to the company's website.

Hungarian energy group MOL signed an EPSA for Oman's Block 66 in mid September.

(Reporting by Daniel Fineren; Editing by Alison Birrane)

((daniel.fineren@thomsonreuters.com)(+971 4 453 6482)(Reuters Messaging: daniel.fineren.thomsonreuters.com@reuters.net))

Keywords: OMAN BLOCK/FRONTIER