Petsec Energy to increase stake in Yemen onshore block

Australian oil and gas exploration firm Petsec Energy has agreed to acquire Mitsui E&P Middle East’s 8.5% stake in onshore Block 7, Al Barqa permit in Yemen, increasing its interest to 29.75%.

Australian company Oil Search operates the 5,000km² block, which is located 340km east of Yemen’s capital Sana’a.

The block contains the Al Meashar oil discovery. Petsec said that it contains an inventory of leads and prospects defined by 2D and 3D seismic surveys which hold significant oil potential.

Petsec Energy chairman Terry Fern said that Block 7 has the potential to add significant oil reserves to the company’s resource base and significant value to its shareholders.

"We look forward to working with the operator, Oil Search, to further appraise the Al Meashar oil discovery and explore the remainder of the block," Fern added.

"Petsec hopes to build upon this initial investment in the Republic of Yemen by seeking further reserve development acquisitions in the region."

Petsec agreed to acquire AWE’s participating interest of 21.25% in the block earlier in the year.