The Netherlands-based Delta Hydrocarbons BV plans to sell its non-earned interest under the agreements pertaining to Delta’s farmout on the Sfax exploration permit and the Ras El Besh concession in Tunisia.
            

Delta’s joint venture partners, Eurogas International Inc., Toronto, and Atlas Exploration Worldwide Ltd., Houston, report Delta has spent to date approximately US$110 million out of its US$125 million commitment under the terms of the farmout agreements. The 50% participating interest that was assigned to Delta under the agreements is subject to reversal if the US$125 million level of expenditure is not attained.

The Sfax permit covers an area of approximately one million acres which includes four oil discoveries in three geological formations including the REB3 well that was drilled in 2008. Large areas of the permit remain under-explored and, since 2004, the partners have acquired 948 square kilometers of 3-D seismic to delineate structures in the central and northwestern portion of the permit area. The participating interests in the Sfax permit and the Ras El Besh concession are Eurogas International at 22.5%, Atlas Exploration at 27.5% and Delta at 50%.

On Jan. 20, the Tunisian hydrocarbon committee approved a two-year extension on the permit that will extend the primary term to Dec. 8, 2011. The partners have committed to drill one exploration well during this extension period.

The 2009 work program and US$12.8-million budget on the Sfax permit and Ras El Besh concession have been approved and will include a 380-kilometer 2-D seismic program to follow the REB3 well drilled in 2008 that had the oil show in the Reineche formation.