Vangold has signed an Acquisition of Interest Agreement for the acquisition of one half of the economic interest for exploration and production of petroleum for Block 6 in Armenia. Block 6 is approximately 3,600 km2 and is located in southern Armenia between the Azerbaijan, Iran and Nakhichevan borders. As consideration of the Interest, Vangold will issue100,000 common shares upon completion and will grant an option on a further 100,000 shares for a period of 12 months. The Agreement is subject to the approval of the TSX Venture Exchange.
The Agreement is with Blackstairs Energy PLC will operate the Block under the terms of the Production Sharing Agreement. An office has been opened in Yerevan. General Manager, Mr. Papworth, a UK-based petroleum exploration consultant with over thirty years of experience, in areas including the North Sea, onshore UK, Libya, Egypt, Tunisia, Malaysia, Gabon, Namibia, Georgia and Russia who has worked intermittently in Armenia since 1994, will oversee the project.
Contract & Licence Issues
The PSA was signed with the Government of Armenia on April 27th 2007. The contract covers the areas designated “Blocks 4, 5 and 6” and extends to c. 13,775 sq. km (c. 3.4 Million acres) in central and southern Armenia. The contract will be operated by Blackstairs Energy plc in partnership with Vangold Resources. The associated “Exploration Licence Permits” and the “Licence Agreement” were also approved by the Armenian authorities in May 2007 and December 2007 respectively. These permits and agreements allow the joint-venture full access to the existing technical archive data and clearance to commence technical operations throughout the entire permit area. The term of the contract is for 5 years with two additional extensions each of 2 years negotiable with the authorities. The work programme over the initial 5 years comprises Geological Studies, Gravity and Geochemical studies, Remote Sensing and 170 km of 2D seismic. The financial commitment is 2.4 Million $US over the initial 5 year term.