(MENAFN- ProactiveInvestors - Australia) Cott Oil and Gas (ASX: CMT) has established a study group consortium to evaluate an area of interest in southeast Papua, Indonesia.
The company will have a 25% interest in the consortium and contribute 25% of the costs of the study.
On completion of the study, which is expected by the end of the third quarter of 2013, the company have an option to acquire a 25% interest in the rights of a Joint Study Agreement in the area.
This will give the consortium the right to gather and evaluate data relating to the petroleum potential of the study area as well as the right of first refusal over a production sharing contract covering a portion of the area.
The area in southeast Papua is believed to contain an unexplored extension of highly prospective oil and gas geology from Papua New Guinea, where Cott holds three petroleum prospecting licences.
It also appears to hold significant migration trends and oil and gas signposts as well as being a large acreage area with potential to host multi trillion cubic feet of gas or billion barrels of oil. Â
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