(MENAFN - Muscat Daily) The Ministry of Oil and Gas signed a new exploration and production sharing agreement (EPSA) on Wednesday for Block 38 with Frontier Resources Oman Ltd, a wholly owned subsidiary of British firm Frontier Resources International Plc.The agreement was signed by H E Dr Mohammed bin Hamad al Rumhi, Minister of Oil and Gas and Michael J Keyes, chief executive officer of Frontier Resources Oman Ltd.Under the agreement, Frontier Resources will explore for oil and natural gas in Block 38 which covers an area of 17,425sq km located within Dhofar region and close to PDO's oil producing Block 6.The commitments of the company under the agreement are to reprocess and re-interpret old 2D seismic data, acquire and process new 3D seismic data and perform geological and geophysical studies. Based on the result of the seismic programme and the studies Frontier Resources will drill wells during exploration periods.Speaking to reporters after signing the agreement, Keyes said that the company is planning to invest at least US20mn for exploration in Block 38 in the initial phase over next three years.He said, ''Under the agreement we have got licence for six years comprising two phases of three years each. We will take a look at old data initially and will acquire 3D seismic which is a new technology which has been used by PDO for imaging the deeper targets in Oman.''It will take at least two and half years before we finish 3D seismic and to acquire process. We are hoping to find both oil and gas in the Block 38 which is considered prospective for oil and gas given the production from the nearby Block 6 operated by PDO.''