BENCHMARK ENERGY CORP. is pleased to report that Calgary-based Storm Ventures International Inc. has successfully completed the acquisition of a significant interest in the Cosmos concession in Tunisia in which Benchmark is a net 31.67% interest holder; SVI is the new operator of the concession.
Benchmark has the option upon meeting certain conditions to increase its interest in the Cosmos concession to a net 45.84%. As part of this transaction, Benchmark has the right to acquire a net 47.5% interest in the nearby Yasmin concession, in which SVI has also acquired a material interest. SVI will also be the operator of the Yasmin concession.
Separately, Benchmark has agreed in principle with a small carried interest holder in the Cosmos concession regarding acquiring the carried interest which would increase the Company's interest in the concession to 47.5% upon exercising the option noted above. Both the Cosmos and Yasmin concessions are subject to a 20% back-in right held by ETAP, the national oil company of Tunisia.
The Cosmos and Yasmin concessions are located in the Gulf of Hammamet, approximately 45 kilometers offshore Tunisia, in water depths of between 100 and 165 meters. The Cosmos Sud structure was drilled and tested in 1983; oil was produced from the Birsa sands of Miocene age. A 3D seismic survey was shot over the discovery in 1985, and was re-processed in 1995. Yasmin was discovered in 1976 and also tested oil from the Birsa sands; a 3D seismic survey was shot over the Yasmin structure in 1986.
SVI has prepared a development plan for the Cosmos concession which will be presented to the government authorities in Tunisia during the first quarter of 2008. SVI has targeted first production from Cosmos during the third quarter of 2009. The independent engineering firm of Sproule Associates Limited, in Calgary, has been retained by Benchmark and SVI to prepare an NI 51-101 reserve report on the Cosmos concession.
The Company further reports that it has arranged a non-brokered private placement for up to 4,000,000 units of the Company at a price of $0.50 per Unit for gross proceeds of $2 million. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.75 per Common Share at any time on or before the 12-month anniversary of the closing of the Offering. The Common Shares and Warrants issued pursuant to the Offering are subject to a four-month hold period. Finders' fees are payable to selling agents in conjunction with the offering.
Proceeds from the Offering will be added to working capital, with some of this to be used by Benchmark to increase its interests in Tunisia as discussed above.
Benchmark Energy is a junior Canadian oil and gas exploration and development Company, focused internationally. In addition to its interests in Tunisia, the Company has undertaken a pilot project in Colombia with Ecopetrol, the national oil company of Colombia, and is negotiating the possible acquisition of a mature, producing field in Argentina. -- www.cnxmarketlink.com
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