Union Texas acquires new interest in Ghadames Basin in Tunisia

Oct. 3, 1997 A subsidiary of Union Texas Petroleum has acquired a 25 % working interest in an exploration venture in the Ghadames Basin in south-western Tunisia. The transaction has been approved by the Tunisian government.
Union Texas acquired its interest in the Borj El Khadra block from Phillips Petroleum Company Tunisia, which serves as operator and has a 25 % working interest in the block. LASMO Tunisia B.V. is also a partner in the venture with a 50 % working interest. In the event that a discovery is developed, L'Enterprise Tunisienne d'Activites Petrolieres (ETAP), the Tunisian national oil company, has the right to participate for up to a 50 % working interest, thereby reducing each co-venturer's working interest in half, assuming full participation by ETAP.
The Borj El Khadra block is adjacent to the Bordj Messouda blocks 406B and 209 in the Ghadames Basin across the border in Algeria. Earlier in 1997, Union Texas acquired a 30 % working interest in the Bordj Messouda blocks from a Phillips Petroleum subsidiary, which serves as operator and holds the remaining 70 % working interest in the Bordj Messouda blocks.
The Borj El Khadra block comprises a total of approximately 1.44 million acres (5,816 sq. km). About 1,500 km of 2-D seismic data have been acquired over the block, where the venture plans to drill an exploration well in 1999. The first of two exploration wells on the Bordj Messouda blocks in Algeria is expected to begin drilling in Oct. 1997.
The Borj El Khadra block represents Union Texas' third concession in Tunisia. Offshore Tunisia in the Gulf of Gabes, Union Texas operates and has a 50 % working interest in the Ramla block, where an exploration well is expected to be drilled in late 1997 or early 1998. Union Texas also operates and has a 65 % working interest in the Jeffara block onshore south-eastern Tunisia, where an unsuccessful exploration well was drilled in the third quarter of 1997.