Sphere, an ASX-listed iron ore player, is making its first foray into the petroleum sector.
The production sharing contracts (PSCs) are in the highly prospective Taoudeni Basin and the Gao Graben, Sphere managing director Alexander Burns said yesterday.
Sphere’s regional investigations had identified promising prospects for oil and gas in Mali, according to Burns.
The company is to undertake a detailed analysis of the newly granted Blocks 8 (Taoudeni) and 10 (Gao) – which cover 35,112 and 37,544 square kilometres respectively.
“Our strategy is to target structural traps in the Taoudeni Basin (Block 8) and Central African Rift system prospects (Block 10) similar to those in Niger, Chad and Sudan where major discoveries have been made in recent years.” Burns said.
“The Mali PSC terms are very competitive. We are delighted to have been awarded these two prospective blocks, considering the potential for oil and gas discoveries and competition for prospective acreage in Mali’s neighbours, Algeria to the north and Mauritania to the West.
“Major oil and gas companies from around the world are now focussing exploration on the onshore potential of West Africa, including Woodside Petroleum, Total, Repsol and CNPC in the Taoudeni Basin, Mauritania.”
Burns said Sphere and its partners were also actively pursuing other permits in the region that offered good exploration potential.
"Sphere’s petroleum geologist, Dr John Scott, will manage the first year’s program - which consists of data collection, analysis and training commitments - from Sphere’s offices in Bamako without affecting Sphere's other commitments" Burns said.
The blocks were awarded to a 95%-owned Mali subsidiary of Sphere, Mali Petroleum. Mali Petroleum’s representative in Mali, Petroleum Services Mali (PSM), retains a 5% free-carried interest in both permits.
In March 2005, Sphere shareholders approved the issue up to four million options and one million shares to Pact Industrie (or its nominee) for the successful award of oil and gas permits in the region. Pursuant to this approval, 500,000 shares and 500,000 options will be issued following the awarding of Blocks 8 and 10 in Mali.
Alexander Burns is the son of Hardman Resources founder and chairman, Alan Burns and will be hoping for similar success in West Africa.
