PRD Energy Inc. has been awarded the Gettorf Exploration Licence (covering approximately 130,000 acres) as well as the Elmshorn Exploration Licence (covering approximately 145,000 acres). Both licences are located within the same Northwest German Basin as a number of PRD's other licence areas and provides the Company with geological and geographical diversification within Germany. The licences are located onshore in the state of Schleswig-Holstein, Germany and have been awarded to PRD Energy GmbH, a wholly-owned subsidiary of the Company.
The Northwest German Basin has a history of significant petroleum discoveries and both the Elmshorn and Gettorf Licences have a history of offsetting production. Both licences are awarded for an initial period of five years and include all rights surface to basement. Pursuant to the terms of the licences, PRD is committed to bringing one well onto production within the initial five year term for each licence. The award of this licence is subject to the review and approval by various municipal and state government authorities in Germany.