Oil Search was awarded a 100% interest in its first exploration block in Tunisia, the Tajerouine Permit, in December 2007 (Oil Search operator) and a 25% interest in its second, the Le Kef permit (Primoil operator), in January 2008. Both permits are located in the onshore Tunisian fold belt covering a total area of 7,688 square kilometres. The commitments for the first four years for Tajerouine are the acquisition of 400 kilometres of 2D seismic data and the drilling of one well, and for Le Kef include the acquisition of 165 kilometres of 2D seismic data and the drilling of one well. The work programme for 2009 comprises acquiring seismic in both blocks.
Tunisia offers low cost exploration with good fiscal terms in a country with an active oil industry where discoveries can be rapidly commercialised.
The two test seismic lines acquired in the third quarter in the Tajerouine permit (Oil Search 100%, Operator) were processed in the fourth quarter and are in the process of being interpreted. The results will be used to refine the location of the main seismic programme which will take place in mid-2010. The programme on Tajerouine will be acquired as part of a larger seismic programme including data over the Le Kef permit (Oil Search 25%). Oil Search will operate the programme in both blocks.