Sagex has informed Icelandic authorities of its withdrawal of the joint application with Lindir Exploration for an exploration and production licence in the Dreki area of the Jan Mayen Ridge in the 1st Icelandic licensing round.

Normally oil companies cooperate to carry out exploration and development activities, especially in frontier areas, to spread costs and thus reduce the risk on technical, commercial and operational matters. With now only one application, such cooperation will not be possible. Sagex believes that more oil companies need to be interested in the area to provide synergies, and in order to attract companies the fiscal and licensing framework need to be improved.

A lot of good work has been done by the authorities in order to complete from scratch all formalities required to start oil activity and conduct the very first licensing round, a process that we expect will be continued. Sagex remains positive to the possibility of finding oil and gas in the Dreki area.