Morocco, situated in northwest Africa, is a politically-stable kingdom now attracting considerable industry interest. Morocco offers upstream investors some of the best fiscal and tax terms in the world with very low royalties and a 10 year tax holiday. Industry interest has grown in Morocco, with onshore basins now attracting considerable attention for their resource play potential, while offshore areas are being leased based on major discoveries being made along the West African continental margin to the south in what are believed to be similar geological settings. Several wells are expected to be drilled onshore and offshore in the next one to two years
Company holds a 75% participation interest in the 2000 sq. km. Doukkala Permit, with the Government organization ONHYM holding the remaining 25%. Paleozoic core samples from prior wells on the block are being analysed by the Company’s research team in Vancouver, existing seismic and well data being reviewed and seismic reprocessing of 1000 km of 2D data will commence in the first quarter, 2013. Besides the potential in the Paleozoic section, conventional Triassic oil leads are being studied (Figure 1). The Company has the option to extend the contract for another five years with additional work program commitments.
Near-term Goals and Action Plans
East West has now reached a point in the Company’s business plan where a number of exploration work programs will commence to evaluate its existing portfolio of assets. Exploratory drilling is expected before year-end in California and next year, 2D and 3D seismic acquisition programs should get underway in India and Romania which will, high-grade future drilling sites. Assuming approval to commence operations in Romania, the Company also expects to participate in a multi-well drilling program in 2013 based on leads and prospects already defined.
In Romania, planning of 2D and 3D seismic programs is complete and seismic operations will commence immediately after approval of the awarded Concessions is received from the government. Bid tenders have been issued for seismic crews and logistics support and our partner NIS has established an operations office in western Romania to execute the program.
In Morocco, investigation of the Paleozoic potential of the Doukkala Permit will be completed by the first quarter of 2013, while additional G&G studies of the Triassic conventional potential are now underway.