Tethys Oil has announced that it will be awarded a new exploration license award for Block 49 from the Oman Ministry of Oil and Gas.
The onshore block will be 100% owned and operated by Tethys Oil through its wholly owned subsidiary Tethys Oil Montasar.
Covering an area of 15,439km2, the block comprises unexplored area in the South West of the Sultanate bordering Saudi Arabia.
Tethys Oil has also acquired more than 11,000km of 2D seismic data for the block from previous operators.
According to Tethys Oil, a total of nine wells have already been drilled within the block boundaries. Of these, several wells have reportedly encountered oil shows.
Tethys Oil said: “The exploration and production sharing agreement (EPSA) for Block 49 covers an initial exploration period of three years with an optional extension period of another three years.”
The EPSA, subject to commercial discovery of oil or gas, will be transformed in to a 15 year production license which option for further extension to another five years.
Tethys managing director Magnus Nordin said: "We are extremely pleased with having been awarded Block 49 and would like to take this opportunity to express our sincere thanks to the Government of Sultanate of Oman.
“The Block covers an area with known oil shows, has a limited initial financial risk and offers several as yet immature but potentially very prolific play concepts.”
Oman Government Company, however, will have right to acquire up to a 30% interest in Block 49 upon making commercial discovery.
The initial work scope includes geological studies, seismic acquisition and processing and exploratory drilling.