Sun will pay the costs of a round of seismic acquisition to earn 20%, which will leave Pancon holding 32% of Area 5. The deal is subject to a satisfactory production sharing contract (PSC) being granted.

The partners are aiming to prove up a prospect and be ready to drill it by early 2004.

Pancon also said it was in advanced discussions with a major company in relation to farming into its offshore Kenyan acreage.