Tekoil announces exploration license approval

Tekoil & Gas Corporation, a production stage oil and gas company with properties in Galveston Bay, TX, has received approval from the Newfoundland & Labrador Department of Natural Resources (DNR), for an Exploration License covering a 244 square kilometer area over the Port au Port peninsula in western Newfoundland. The Company intends to carry out a high density transition zone (TZ) 3D seismic survey over the Port au Port peninsula, which will extend over land and into 50 feet of water along the peninsula’s entire west coast.

In addition to approval of its Exploration License, Tekoil has received its clearance from further Environmental Assessment (EA) from both the DNR and the Canada-Newfoundland & Labrador Offshore Petroleum Board (C-NLOPB). As with every exploration program there will be additional permits and compliance to certain terms and conditions.

Tekoil also received its Operating License from the C-NLOPB, for its intended 2007 drilling program with farm-in partner Ptarmigan Resources, as well as its Exploration License from the DNR. Upon completion of the well, Tekoil will earn a 33 percent working interest in offshore license EL-1069. These approvals will have attached terms and conditions and are the first steps in obtaining final approval for the drilling of Tekoil’s first well in western Newfoundland.