International Sovereign Energy Corp.
TSX : ISR

International Sovereign Energy Corp.

November 17, 2006 09:30 ET

International Sovereign Energy Corp.: Agreement Reached on Two Gas Concessions in Pakistan

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2006) - International Sovereign Energy Corp. (TSX:ISR) (the "Company") is pleased to report that agreement in principle has been reached with Mari Gas Company Limited ("MGCL") of Islamabad, Pakistan to farm into a twenty percent (20%) and fifteen percent (15%) working interest from MGCL's interests in, respectively, the Sujawal and Sukkar Blocks located in Sindh Province, Southern Pakistan. The formal Farm-In Agreements for the Sujawal and Sukkar Blocks are in preparation and are subject to the Government of Pakistan approval for the transfer of the interests to International Sovereign and to regulatory approval.

The Sujawal Block is situated West of the Badin Block discoveries area in Sindh Province (Lower Indus Basin) which area contributes more than 50% of Pakistan's oil production. The main producing reservoirs are Cretaceous and Paleocene sands. The Block details and agreed Farm-In terms are as follows;

Sujawal Block - Summary

- Block area 2,416.43 Sq. Km.

- Numerous oil and gas discoveries exist to the East of the Block. As the Block is located adjacent to a main gas pipeline a gas discovery could therefore be brought on stream on a fast track basis.

- The Block contains multiple plays.

- The Company has negotiated a twenty percent (20%) direct working interest in the Block with MGCL.

- Under the terms of the Agreement with MGCL the Company will:

(I) Pay its proportionate share of MGCL's prior costs from the date of grant of the Concession to the date of assignment.

(II) Contribute its twenty percent (20%) of the Concession expenditure commitments going forward.

Sukkar Block - Summary

- Block area 2,435.40 Sq. Km.

- Numerous large producing gas fields with multiple reservoirs within the Sui Main Limestone and lower Goru sands (0.5 - 10 TCF of gas reserves) surround the Block. The main source rock is Sembar Formation of Cretaceous age.

- The Block contains multiple gas plays.

- The Block is close to a main gas pipeline. As adequate infrastructure exists a gas discovery could be brought on stream on a fast track basis.

- The Company has negotiated a fifteen percent (15%) direct working interest in the Block with MGCL.

- Under the terms of the Agreement with MGCL the Company will:

(I) Pay its proportionate share of MGCL's prior costs from the date of grant of the Concession to the date of assignment.

(II) Carry MGCL for ten per cent (10%) of MGCL's proportionate costs until the Concession Documents expenditure commitments are completed.

(III) Contribute its fifteen per cent (15%) of the Concession expenditure commitments going forward.

Mari Gas Company Limited (MGCL) is a registered public limited company listed on all of the stock exchanges of Pakistan. The Government of Pakistan directly and indirectly holds 80% of the Company and 20% is held by the general public. MGCL is an important Pakistani hydrocarbon company operating the second largest gas field in the country located at Daharki, District Ghotki, Sindh Province.

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia, Calgary, Alberta and Islamabad, Pakistan and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.

Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.

Shares Outstanding: 13,253,796

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    (604) 684-2407 (FAX)
    Website: www.isove.com