Operations
CYGAM OPERATIONS:
ITALIAN PERMITS:
Civitaquana Permit
Vega has a 60% working interest in the application for the Civitaquana permit. The Civitaquana block is located onshore Italy, west of the B.R268 Permit, in the Marche-Abruzzi Basin. The block was provisionally awarded March 6, 2002 and Vega expects to receive the final approval in 2006. The permit is 615.45 square kilometres in size (152,081 acres) and will be valid for a period of six years from the date of official grant. Vega is committed to purchase and / or reprocess approximately 100 kilometres of seismic data and acquire approximately 60 kilometres of 2D seismic data within the first 12 months from official approval and will have to commit to drilling a well to a minimum total vertical depth of 1,500 metres within 48 months.
At Civitaquana, three primary targets are believed to exist: a Miocene calcarenite at a depth of approximately 1,500 metres, the Cretaceous Maiolica Formation (Tithonian turbidites) and the Jurassic carbonates of the Massiccio Formation at a depth of 4,000-4,500 metres. An additional objective could be the Cretaceous Scaglia Formation, which can be encountered at drilling depths of approximately 2,500 to 3,000 metres. At Civitaquana, existing seismic lines suggest the possibility of large structures and stratigraphically controlled prospects. The geological set-up of the permit is very similar, conceptually, to the B.R268 Permit with the only difference being that the Civitaquana permit is located within the thrusted belt portion of the Appennines which has been transported over the in situ geological section identified in the B.R268 Permit.
Vega recently signed a Joint Venture Agreement with a London AIM listed company which will pay 40% of well costs. The Company may farm-out another portion of its interest on a "pay 60% to earn 40%" basis and intends to remain the operator for the permit.