Gulfstream Resources Canada Ltd. has concluded a series of transactions that have increased its working interest in the Block 11 area in Qatar from 27.5 percent to 49 percent.
In addition, Wintershall AG has increased its interest from 15 percent to 51 percent, and has assumed operatorship and corresponding obligations.
The Government of the State of Qatar approved the transactions on December 6, 2000 and final closing occurred on December 14.
The cost of the acquisition to Gulfstream consists of a cash payment of approximately $US 1,654,000 and is based on other non-cash considerations.
Block 11 encompasses a 2,641 square kilometre area in offshore Qatar adjacent to the Al Rayyan producing field.
The former consortium conducted a 3,350 kilometre seismic program across the Block in early 1997.
A total of eight wells have been drilled within the Block area, including the ALR-8 well that was drilled in 1996 as a step-out to the Al Rayyan discovery and encountered oil in a separate structure.
Wintershall and Gulfstream have proposed a two-well drilling program for 2001 to test two prospects, including the structure intersected by ALR-8. The appraisal wells are to be drilled back- to-back starting mid 2001.