The joint venture - comprising Pancontiental, Afrex and Sun Resources - recently completed the first phase of interpreting the seismic data acquired during August 2004.

The survey was designed to define the extent of stacked reefal/biohermal trends in the block.

"These features appear to be very similar in age and geological character to major commercial oil and gas fields in neighbouring offshore Tunisian and Libyan waters," Pancontinental said.

The offshore Tunisian 300-400 million barrel Ashtart and Isis oil fields lie about 20km west of the permit boundary. The Bouri field, 55 kms to the south in Libyan waters, is reported to have reserves in excess of one billion barrels of oil.

"These offshore Tunisian and Libyan fields are supported by a sophisticated pipeline infra-structure that is one of the principal suppliers of energy to European consumer countries, notably Italy, southern and central Europe," the company said.

The two large Malta offshore permits cover an area of about 14,800 sq kms with water depths ranging from 100 to 400 metres.

"These water depths are considered to be shallow water by current offshore drilling and production technologies," Pancontinental said.

The joint venture is now inviting major operators in the area to earn equity in the project by drilling exploration wells on the Malta prospects in the near to medium term.