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NORCEN INTERNATIONAL LTD. ANNOUNCES FARMOUT AGREEMENT

 NORCEN INTERNATIONAL LTD. ANNOUNCES FARMOUT AGREEMENT
 CALGARY, Alberta, Aug. 11 /PRNewswire/ -- Norcen International


Ltd., a wholly owned subsidiary of Norcen Energy Resources Ltd. (AMEX: NCN; Toronto, Montreal: NCN), today announced that it has entered into a farmout agreement with a group composed of Mobil Oil Corp. and substantial Japanese corporate interests with respect to Petroleum Prospecting Licence No. 82 ("PPL-82") which contains the Pandora gasfield, offshore Papua New Guinea.
 The farmout arrangement provides for Norcen to transfer its 15 percent working interest to the farmin group and receive cash payments related to the level of the group's expenditures on PPL-82. If the group's expenditures reach the agreed maximum, payments to Norcen International will total U.S.$1.25 million. In the event that a commercial oil discovery is made on the permit, then Norcen International would receive a further cash payment of U.S.$1.5 million upon first oil production. If, after the drilling of Pandora B1X, the farmin group elects not to complete its earning programme, Norcen International will have the opportunity to regain its 15 percent working interest at no extra cost.
 Commenting upon the transaction, Dale R. Dolphin, executive VP of Norcen International, said, "The long-term nature of Pandora's development prospects does not fit well with our current operating strategies, which are focused on maximizing the present value of our investments. In addition to providing us with an immediate cash payment of up to U.S.$1.25 million, this farmout arrangement also provides us with relief from obligatory exploration expenditures estimated at approximately U.S.$1.6 million. We are pleased to have this opportunity to relocate these investment funds to other international prospects offering earlier development potential."
 -0- 8/11/92
 /CONTACT: Ron Burrows of Norcen Energy Resources Ltd., 403-231-0107/
 (NCN) CO: Norcen Energy Resources Ltd. ST: Alberta IN: OIL SU:


JL -- LA016 -- 8981 08/11/92 12:42 EDT
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Publication:PR Newswire
Date:Aug 11, 1992
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