2013-01-21 18:35:01 -
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/21/13 -- Vangold Resources Ltd. (TSX VENTURE:VAN) and joint venture partner Blackstairs Energy PLC today announced that they have received the first two year extension of their Petroleum Exploration and Production Sharing Agreement with the Government of the Republic of Armenia.
In 2007 Vangold (50%) and Blackstairs Energy (50%, Operator) entered in to a five year Petroleum Exploration and Production Sharing Agreement (the "PEPSA") with the Government of the Republic of Armenia. The PEPSA defines terms for the exploration and development of petroleum resources on three licence areas: Blocks 4, 5 and 6. The blocks cover an area of 9,487 sq-km and encompass the majority of a large sedimentary basin known as the "Central Depression".
"This development allows Vangold to focus on creating a well-financed corporate spin-off entity with a mandate to advance exploration on this highly prospective land package," says Bruce Counts, President of Vangold Resources Ltd.
Under the terms of the PEPSA, the joint venture partners can apply for two extensions of two years each. The extension announced today represents the first of the two periods and will keep the PEPSA in good standing until 30th December, 2014. Highlights of the PEPSA include the following:
-- Reasonable work commitments for extension period: 250km of two-
dimensional seismic surveys and the drilling of one exploration well
-- A second extension to December 2016 is negotiable
-- 25 year commercial licence for any producing field
-- Favourable commercial terms for production of oil and gas
Located in central and southern Armenia, the Central Depression extends east to the border with oil-rich Azerbaijan and south toward the border with Iran. The basin has never been subject to systematic exploration using modern technology and equipment. The technical data acquired by the joint venture to date are very encouraging and provide compelling evidence for the existence of significant accumulations of hydrocarbons within the licence area. The Central Depression includes the following:
-- A sedimentary column up to seven kilometers thick
-- Sediments that range in age from Devonian to recent
-- The presence of bitumen deposits and active oil seeps at surface
indicating hydrocarbon development
-- The tectonic activity required (folding, faulting and wrenching) to
develop oil and gas reservoirs.
Vangold is a publicly traded, Canadian exploration company focused on advancing its portfolio of global mineral and petroleum assets.
On Behalf of the Board of VANGOLD RESOURCES LTD.
Bruce Counts, President
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Vangold Resources Ltd.