Oil and gas company Oil Search, (ASX:OSH) has announced a deal with Petsec Energy concerning its onshore exploration permit in the republic of Yemen.
Under the agreement Petsec will acquire all shares of Oil search subsidiary Oil Search (ROY) Limited.
Oil Search (ROY) Limited holds a 40 per cent working interest in the (Block 7) license and operatorship in the Republic of Yemen.
Block 7 is an onshore exploration permit covering an area of 5000 square kilometers.
The block contains the Al Meashar oil discovery made by Oil Search in 2010 as well as an inventory of nine prospects and leads defined by seismic surveys.
The transaction increases Petsec’s potential working interest in Block 7 to 100 per cent.
Petsec says the deal means they can now focus on bringing the oil and gas fields into production.
Shares in Oil Search (ASX:OSH) are trading 1.7% higher to $7.19