onshore in the Reconcavo Basin.
Norse Energy Corp (NEC) has in a joint venture partnership with Starfish Oil and Gas SA, a local Brazilian company, won the bid for two blocks in the Brazilian government auction of exploratory blocks, onshore in the Reconcavo Basin.
The total signature bonus for the two blocks (REC-T-106 and REC-T-165) was 371,000 reais. Norse has a share of 30 % in each of the two blocks.
The joint venture partners have a commitment to drill 1 exploration well on each block. The financial commitment for the drilling of the two wells is about USD 1 million for Norse, over a period of 2 years.
The Reconcavo Basin has been producing oil for the last fifty years, and is one of the oldest and most prolific onshore basins in Brazil. The Reconcavo Basin is the onshore part of the Camamu Basin, where Norse is involved in the Manati gas field. The prospects for further oil discoveries in Reconcavo are considered as good.