Manas Petroleum Corp. (OTC.BB: MNAP - News) has signed a MOU with a Mongolian company, Shunkhlai Energy, regarding petroleum exploration in block XXIII. Manas Petroleum has a right to purchase a 90% interest in the Mongolian company, which has won a bidding round for the block XXIII.
Block XXIII is situated in the Gobi desert in the southern part of Mongolia bordering China and totals 18,091 km2 (4.47 million acres) of highly prospective oil-bearing area (outlined in red on attached map). Across the border in China (Inner Mongolia Autonomous Region in North China) the Gobi desert is known as one of the major producing regions of China.
Block XXIII is located in this oil bearing province and has multiple oil seeps where reservoir rocks outcrop. The same reservoir rocks are producing oil in Zuunbayan and Tsagaantsav shallow oil fields which are situated in close vicinity to the north of block XXIII. The oilfields are operated by a Chinese company Dong Sheng, which is a branch of PetroChina, which operates in the north of China and in Mongolia. The two producing oilfields are very shallow (a few hundred metres deep). To the south in China's Inner Mongolia Autonomous Region is a large natural gas field discovered by PetroChina. The field is currently estimated to contain over 600 billion cubic meters (21.18 trillion cubic feet) of natural gas and 500 million tons (3.6 billion barrels) of oil.
Large structures have been identified by old Soviet seismic acquired within Block XXIII during the 1970s. The structures are situated beneath regional thrust faults and may entrap large volumes of hydrocarbons in the same reservoir rocks which produce hydrocarbons in the upper thrust sheet close to the surface.
In July 2007, field work performed by Manas Petroleum in the territory of block XXIII, confirmed the structural model and also indicated the presence of large thrust-related prospects throughout the block.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates", "believes", "estimates", "expects", "plans", "intends", "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release including such forward looking statements.
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