Jordan

In May 2007 a Production Sharing Agreement (PSA) was signed in which Petrel retained 100% ownership in the East Safawi block located on the Jordanian Basalt Plateau of the Arabian Desert close to the Iraq border. The PSA has its origins in a Memorandum of Understanding (MOU) signed in 2005 with the Jordanian government's Natural Resources Authority to reprocess seismic and conduct other exploration work on the block.

East Safawi Block has 8750 sq Km, is close to producing fields and forms part of the prospective Arabian Desert. The East Safawi block adjoins the producing gas field at Risha and oil producing blocks in Syria. The oil targets are in shallow formations and there are well-established gas plays at depth.

The agreement envisages a 3 year first phase exploration. Initial work includes seismic reprocessing and reinterpretation and new seismic. Targets identified are expected to be drilled in 2008/09, depending on operational developments.

Historically, a concern was that Jordan is most prospective for gas. This is now seen as an advantage, due to the massive international increase in demand for natural gas, both in the region and further. With the Arab gas pipeline project well advanced, and planned to extend to Turkey and into the European network, Jordan could be both a supplier and reliable access route for Middle Eastern gas exports to Europe.