HOEC waives right to stake in CY-OSN-97/1

Vol 10, PW 13 (19 Oct 06) News in Brief
     

HOEC has formally agreed not to exercise its right to buy US explorer Mosbacher Energys 20% stake in Cauvery basin block CY-OSN-97/1.

In July we reported that Mosbacher had sold its entire stake in the block to Minnesota-based hedge fund Deephaven Capital Management. HOEC received a pre-emption notice on 21st July and had 30 days to match the Deephaven offer to Mosbacher under the PSC but decided not to block Deephavens entry into the consortium.

It is up to Mosbacher to get all the necessary approvals from the government of India to assign its stake to Deephaven, says a source. On 17th October HOEC reported that its first exploration well Vinayaka-1 at CY-OSN-97/1 did not encounter hydrocarbons and was plugged and abandoned.

HOEC adds that drilling rig Aban VII from Chennai-based Aban Loyd Chiles will now move to the PY-1 gasfield to drill its first development well. Aban VII is on a two firm well contract with HOEC.