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Interra Resources secures 11-year deal from Myanma Oil & Gas Enterprise

INTERRA Resources Limited said on Thursday that it has secured an 11-year deal from state-owned Myanma Oil & Gas Enterprise to extend oil production activities in Myanmar.

With the definitive agreements expected to be signed soon, Interra Resources plans to substantially expand the exploration and development activities of its Chauk and Yenangyaung fields to increase its petroleum production in Myanmar.

The new deal paves the way for Interra Resources to explore for new petroleum reservoirs and pools and accelerate development drilling in existing accumulations, the group said. This will result in a substantial increase in Interra Resources' reserves base.

Interra Resources' chief executive officer Marcel Tjia said: "This 2017 agreement will allow Interra Resources to expand its operations to a higher level, given Myanmar's economic development potential. For Interra Resources, it will create an opportunity to implement the latest advanced oil and gas techniques and technologies to support the country's on-going development in this sector."

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The contract areas in the Myanmar Central Basin cover some 1,800 sq km. Interra Resources has a 60 per cent interest in Goldpetrol Joint Operating Company Inc, which has 100 per cent interest in the Chauk and Yenangyaung fields and is the operator of both fields.

In the first quarter, Interra Resources had generated a combined 70,096 barrels of oil from the two fields.