Extension to minimum work obligation

 

TIDMCDS 
 
RNS Number : 3578W 
CDS Oil & Gas Group PLC 
28 July 2009 
 

 
 
 
 
CDS Oil and Gas Group plc ("CDS" or the "Company") 
Extension to minimum work obligation 
 
 
LONDON, 28 July 2009: CDS the AIM quoted oil and gas explorer (CDS.L) with 
operations in Paraguay is pleased to announce that it has received 
an extension from the Paraguayan Ministry of Public Works and Communications 
("MOPC") - which is also responsible for energy and mining - to the Company's 
minimum work obligations on its exploration licence over the Boqueron block. 
 
 
The Company's minimum work commitments for the Boqueron block initially required 
it to drill a minimum of three exploration wells prior to 21 November 2009. 
Whilst the minimum work obligation remains unchanged the MOPC has suspended the 
Company's commitments for 12 months, extending the expiry of the minimum work 
period to 21 November 2010.  The extension affords CDS greater flexibility in 
identifying and negotiating terms with potential farm-in partners. 
 
 
Patrice Roman, CEO of CDS, commented:  "The extension will assist the ongoing 
discussions with new strategic partners in order to finance the next phase of 
our exploration program, which will consist mainly of drilling. It also 
demonstrates the high value of the relationship maintained by CDS with the 
Paraguayan authorities resulting from the fact that over the recent years CDS 
has been a principal player as regards oil and gas exploration in Paraguay." 
 
 
At this time, the Company has received a significant level of interest from 
prospective investors with a view to covering the cost of the next stage of the 
exploration programme and whilst no funding arrangements have yet been formally 
agreed, the directors of the Company remain confident that further funds will be 
arranged in the near future. 
 
 
 
 
Note to Editors: 
CDS Oil and Gas Group plc is a UK company which, through its Paraguayan 
subsidiary, CDS Energy SA, has a 98.2% working interest in three large blocks 
with substantial oil and gas exploration potential in the prospective eastward 
extension into north-west Paraguay of the productive Bolivian Chaco Basin. 
 
 
+--------------------------------------+--------------------+ 
| Further information:                 |                    | 
+--------------------------------------+--------------------+ 
| CDS Oil and Gas Group                |                    | 
+--------------------------------------+--------------------+ 
| Patrice Roman - CEO                  | [phone]   | 
+--------------------------------------+--------------------+ 
| Hanson Westhouse Limited             |                    | 
+--------------------------------------+--------------------+ 
| Bill Staple / Richard Baty           | +020 7601 6100     | 
+--------------------------------------+--------------------+ 
| UK enquiries:                        | +020 7796 4133     | 
| Hudson Sandler                       |                    | 
+--------------------------------------+--------------------+ 
| Jessica Rouleau                      |                    | 
+--------------------------------------+--------------------+ 
| Other enquiries:                     | [phone]   | 
| B4 Communication                     |                    | 
+--------------------------------------+--------------------+ 
| Claude Baumann/Frederic Jacquemoud   |                    | 
+--------------------------------------+--------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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