Petra Petroleum Inc. has recently submitted applications for a number of exploration permits offshore Spain. These applications are further steps in the execution of the Corporation's E&P strategy which focuses on high impact exploration areas of the Mediterranean and North Africa region. The blocks are relatively unexplored and could have the potential for large commercially-attractive gas prospects on the doorstep of the large European gas market.
The Corporation has established a wholly owned subsidiary in Spain and has deposited an aggregate security deposit of approximately 1.0 million Euros with the Spanish Treasury. The Corporation has applied as the sole permit holder and operator, and has signed a conditional agreement with two strategic industry partners to undertake a high quality exploration work programme, once the permits have been awarded. The applications are currently under review by the Ministry to determine their validity, following which a public notice would be placed in the Official State Gazette to start the application evaluation process and which could lead to a potential award of permits in due course. At this time, the Corporation has not received any indication that these permits will be awarded.