ARA Petroleum has signed an Exploration and Production Sharing Agreement for Block 31, onshore Oman, with the Government of the Sultanate of Oman. Block 31 is over 8,500 sq.km, neighbouring ARA's existing operation in Block 44.

The EPSA was signed by H.E. Dr Mohammed bin Hamad Al Rumhi, Minister of Oil and Gas, on behalf of the Omani Government, and by Mr Khalid bin Mohammed Al Zubair on behalf of ARA Petroleum.

Block 31 is an 8,526 km² area located in the interior of Oman and straddles the Hajar Mountains, neighbouring ARA's existing operation in Block 44. It is located to the north of some of Oman's largest oil fields. Like those fields the expected reservoirs are within the Wasia and Kahmah groups. Additional potential may exist within thrust sheets of the Sumeini Group.

Extensive erosion of the Hajar has resulted in a breach of the anticlines composing it and the creation of a series of extremely deep wadis cutting through the entire stratigraphic section. Because of this it is possible to view in detail the three dimensional aspects of what are the subsurface reservoirs. Thrust faults, which form a trap type in the block are also visible in outcrop.

Tight gas is the predominant play within Block 31. Within the tight gas play is an unconventional sub-play for the Natih E. This unit is a source interval and also a reservoir. Development of unconventional gas is only beginning in the Sultanate and the Natih E has been recognized as a prime target across northern Oman.