Fusion - whose MD Alan Stein worked closely with Hardman previously as a technical consultant - has signed an exclusive Technical Cooperation Agreement with the Government of the Saharawi Arab Democratic Republic (SADR) - formerly Western Sahara.

The TCA covers the entire offshore territory of the SADR, an area of approximately 210,000 square kilometres, extending from Mauritania in the south to Morocco and the Canary Islands (Spain) in the north.

Fusion said it would undertake, on behalf of the SADR, a detailed study and evaluation of the prospectivity of the country's offshore territory through geological and geophysical studies of the area.

The company said this would assist the Government of the SADR to better understand the offshore oil and gas potential of the area and formulate appropriate policy to attract international investment.

There is a 16 month timetable on the study at the end of which Fusion will have the right to select up to 60,000 square kilometres in exploration licences.

The Government of the SADR has given an undertaking to award the nominated exploration licenses within 6 months of the SADR being admitted to the United Nations.

Stein 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 a 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.

"We are deeply honored to have been selected by the Government of the SADR to conduct such a significant project."