DUBAI, Oct 10 (Reuters) - Frontier Resources InternationalPlc has signed an exploration and production sharingagreement (EPSA) with the Omani government for a 100 percentinterest in Oman's Block 38, Frontier said in a statement onWednesday.
The EPSA runs for six years on the Mudayy Block, covering anarea of 17,425 square kilometres in the Dhofar region ofsouthwest Oman.
The block, which includes southern parts of the Rub Al KhaliBasin, currently has had only three wells drilled and isconsidered prospective for oil and gas, Frontier said.
"Based on the evaluation of vintage seismic, well data andregional geologic studies Frontier is of the opinion that theBlock contains an untested salt basin with explorationpotentially analogous to the other proven salt basins of Oman,"the company said.
The small oil and gas explorer said it would conductgeophysical and geological studies during the first three-yearphase of the agreement, with well drilling to follow if merited.
Frontier is already looking for fuel onshore Namibia andZambia, while its current production assets are all located inTexas, according to the company's website.
Hungarian energy group MOL signed an EPSA forOman's Block 66 in mid September.
(Reporting by Daniel Fineren; Editing by Alison Birrane)
Keywords: OMAN BLOCK/FRONTIER