Egyptian Petroleum Concession
Agreement Dover Petroleum Corp. and Dover Investments Limited signed Concession Agreement for Petroleum Exploration and Exploitation throughout the East Wadi Araba Area of the Gulf of Suez. The Concession Agreement covers an area of 393 square kilometers (151.7 square miles). Dover Investments Limited is a party to the Concession Agreement with the Arab Republic of Egypt and the Egyptian General Petroleum Corporation. Dover Petroleum Corp.'s wholly owned subsidiary, Dover Petroleum Egypt I, Inc., owns a 50% interest in Dover Egypt I JV, which is a party to an Option Agreement entitling Dover Egypt I JV to acquire 100% of Dover Investments Limited operator's interest in the East Wadi Araba Concession Agreement. Under the Option Agreement, and as required by the Concession Agreement, Dover Egypt I JV has budgeted spending of $12 million for drilling of 6 proposed exploration wells over the next 7 years. Drilling of the first of two exploration wells is expected to start in September.