Tuesday, Oct 11, 2011
AMMAN (Dow Jones)--Canada's Ammonite Energy Ltd. has initialed a production-sharing agreement, or PSA, with Jordan to explore for oil and gas in the country's Jafr block, the head of Jordan's Natural Resources Authority said late Monday.
The agreement still awaits approval from the kingdom's council of ministers, Mousa Ali Alzyoud, told Dow Jones Newswires on the sidelines of an energy meeting in Amman. Once approved by the cabinet, the agreement will also need to be approved by parliament, he added.
The Jafr block is part of the oil and gas perspective areas in Jordan, and adjoins the producing oil field at Azraq and the promising one in Sirhan.
Alzyoud said the kingdom is also offering the Northern Highlands block to international companies. He said some firms have shown interest in the block but gave no further details.
Jordan has negligible oil reserves, but vast oil shale resources. The kingdom has signed three oil shale concessions so far, including one with Royal Dutch Shell PLC (RDSA). The others are with Estonia's Eesti Energia AS and U.K-based Jordan Energy and Mining Ltd., a unit of Tunbridge Wells.
-By Hassan Hafidh, Dow Jones Newswires; +962 799 831831; hassan.hafidh@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
11-10-11 0640GMT
