San Leon has entered into a joint venture with Al Meinaa Oil Services Limited (Al Meinaa) for the reciprocal referral and joint evaluation of Oil and Gas projects in the Republic of Iraq.

Al Meinaa is based in Baghdad, Iraq and was established in 2003 to work with international resources and engineering companies and rapidly expanded into the area of reservoir modelling and geological and geophysical studies, providing its services as a local partner to international companies. It has compiled information on numerous fields around Iraq, including the Ajeel, West Qurnah, Mansouria, Akkas and Bani Hassan fields. In February 2009, Al Meinaa, in a joint venture with Petronor Group, signed a 40 year lease for a large land site in Basrah, with South Oil Company for the development of an oil and gas supply base. Its management consists of senior Iraqi engineers.

Under the terms of the Joint Venture, once a potential project is identified by one party, the other party has a right of first refusal to evaluate that project. If such party wishes to review the project further, it shall have a 60 day period of exclusivity to do so, following which the parties shall act in good faith to agree the terms of their joint participation in the project and enter into a shareholders' agreement to further govern that project (and any further projects they agree to jointly participate in) (the "SHA"). The other party has no obligation to review or evaluate any particular project and in those circumstances, or if the parties are unable to agree the terms of their joint participation in a project, the introducing party is entitled to continue with the project without the involvement of the other party (which itself shall be prohibited from participating in the relevant project for a 2 year period).

Tags: San Leon Energy