ST. PETER PORT, GUERNSEY–(Marketwire -09/19/11)- Oyster Oil & Gas Limited (“Oyster Oil” or the “Company”) is pleased to announce the formal signing of a Production Sharing Agreement (“PSA”) between the Government of the Republic of Djibouti (“Djibouti”) and Oyster Oil.
The PSA covers four blocks: Blocks 1, 2, and 4 are located onshore and Block 3 is located offshore. These blocks are situated within the potentially prospective Guban Basin and Red Sea Basin covering a total area of approximately 14,100 km(2) (approximating to 3.5 million acres). The Guban Basin also extends into Somaliland where there is strong evidence of an active hydrocarbon system with numerous oil seeps and where oil has been recovered from wells drilled in previous decades; significantly there are also excellent analogues with the large and prolific Jurassic oil fields located nearby in Yemen. The Red Sea Basin also provides evidence of oil generation, migration pathways and trapping, with several discoveries in the Northern area of the Red Sea Basin.
Oyster Oil holds a 100% working interest and is the Operator of Blocks 1, 2, 3 and 4. A comprehensive work program will be commenced to evaluate the exploration potential of these blocks.
Notes to Editors
Oyster Oil & Gas Limited is a privately funded international energy group focused on oil and gas exploration and production activities in underexplored hydrocarbon basins. Oyster Oil has a vision to build a world class portfolio of oil and gas assets primarily in Africa, through the exploitation of high potential exploration programs. For further information please refer to www.oysteroil.com.
About The Republic of Djibouti: The Republic of Djibouti is located in the “Horn of Africa”. In 1999 Djibouti held its first multi-party presidential elections and in April 2011 Ismail Omar Guelleh was re-elected as President. The Republic of Djibouti was formally a French Territory and gained independence in 1977. Djibouti occupies a strategic geographic location at the mouth of the Red Sea. Djibouti maintains close ties with a number of