Calibre Energy, Inc. (OTC BB:CBRE), ("Calibre", "the
Company") announced today that it has entered into an agreement with
Hawler Energy, Ltd. to participate in an Exploration and Production
Sharing Agreement ("EPSA") with the Kurdistan Regional Government
("KRG") of the Republic of Iraq, covering the Bana-Bavu structure
(also known as Bina Bawi). Calibre will have a 10% participation
interest. The agreement calls for an upfront payment of $2 million, an
additional $2.5 million work commitment, and a $1 million success fee
payable upon completion of the first well.
Partners in the Bana-Bavu EPSA include Hawler Energy, Ltd., a
subsidiary of Prime Natural Resources, a privately-held oil and gas
exploration company based in Houston, TX and funded by Elliott
Associates, LP, a New York-based hedge fund and Hillwood Development
Corporation, a privately-held real estate and oil and gas company,
founded by its Chairman, H. Ross Perot, Jr. International partners
include Petoil, a Turkish oil and gas company, with offices in Iraqi
Kurdistan and Oil Search Limited (ASX: OSH.AX), a publicly-traded
Australian oil and gas exploration and development company, with
international operations in Yemen, Egypt and Libya. Petoil is serving
as the operator of the venture and is an existing partner with Hawler
Energy, Ltd. in Iraq.
The Bana-Bavu EPSA covers the northern extension of the oil and
gas rich Zagros Fold-belt and is approximately 70 kilometers north of
the super giant, 17 billion barrel Kirkuk oil field, located in the
Irbil governorate, 100% controlled by KRG. The area is on trend with
the large Taq Taq oil field to the south and the recently announced
Tawke-1, a 5,000 barrel per day oil discovery operated by DNO ASA
(Oslo:DNO.OL), a Norwegian independent oil and gas company, to the
northwest.
The Bana-Bavu structure is a 30 kilometer by 10 kilometer surface
anticline, which is expected by the Company to contain primary oil
reserves within the Triassic reservoir objective and secondary reserve
potential in the Lower Cretaceous and Jurassic sections of the
structure. An initial exploration well (Bina Bawi-1) is expected to be
drilled to a target depth of 3,050 meters. The well is anticipated to
reach total depth approximately 65 days from spud date.
"Partnering with a syndicate of seasoned international E&P
specialists, Calibre is positioned to build its oil resources and
participate in the development of what is potentially the next world
class field. The Bana-Bavu EPSA represents excellent value for Calibre
to participate in a high quality exploration area with substantial
reserve potential and relatively low technical risk," said Prentis B.
Tomlinson, Jr., Chairman and CEO of Calibre Energy. "A critical
component of our decision to invest in this project is the region's
secure oil export route to the Mediterranean via Turkey."
"Kurdistan has numerous undrilled structures and large unexplored
areas that have significant undeveloped oil and gas potential.
Although there have been 73 oil and gas fields discovered in Iraq,
only 15 of these fields have been brought into production." Mr.
Tomlinson continued. "We believe, along with our partners, there will
be many opportunities for a wide range of upstream activities in the
region, and we are delighted to be on the ground floor of this
development."
Calibre's expansion into Iraqi Kurdistan, a country with the
world's fourth largest proven oil reserves, builds on the Company's
successful drilling and leasing activities focused in the prolific
Barnett Shale in North Texas initiated in 2005. The Company then
expanded its unconventional natural gas shale exploration and
development operations into the Fayetteville Shale in the Arkoma Basin
of Arkansas.
Headquartered in Washington, DC with operating offices in Houston,
TX, Calibre Energy, Inc. is an early stage oil and gas company focused
on the creation of shareholder value through the development of world
class unconventional and untapped domestic and international oil gas
resources with operations in the Barnett and Fayetteville Shales and
Iraqi-Kurdistan.
Please visit our Web site: www.calibreenergy.com
