Clontarf has signed exploration and development contracts on two blocks in Peru.
The licenses which were awarded in the October 2010 tender round, were approved by Supreme Decree on July 26 and were signed at a ceremony in Lima on September 28, by the President of the State Oil Company, Perupetro.
Block 188 consists of 595,809 hectares of prospective ground close to the world-class Camisea producing field which is estimated to contain 16 trillion cubic feet of gas and 400 million barrels of condensate. The Directors believe that Block 188 has Camisea-type potential and is also prospective for medium-size shallower fields:
Block 183 consists of 396,826 hectares in the Marañon Basin, which has produced since the 1940s. The block is located beside existing production. The Directors believe that any future discovery on this block could connect to the existing gas and oil/condensate transport infrastructure.
Peruvian fiscal terms are attractive, with a combination of royalty and taxes. Work programs are reasonable and bonding requirements acceptable at $135,000 per block. The Peruvian Government take is proportional to overall field profitability: the total effective state take is approximately 50% of revenue.
David Horgan, Managing Director, commented, "Yesterday's signature marks a key step in Clontarf Energy's development. Clontarf was the only junior company to qualify for the October 2010 Peruvian Bid Round, alongside the world's leading majors and National Oil Companies.
"We bid on three blocks and won two on good terms.
"Peru is an excellent country for hydrocarbons. It has produced oil for a century but much of the interior remains unexplored. There is now a developed oil & gas infrastructure close to both blocks. Both areas are peaceful. Peru's economy is growing quickly and there have been open and fair elections. Perupetro, the state oil company, is a highly professional partner and a pleasure to work with.
"Our technical team is already off to a running start. We have acquired historic regional data and have begun working up drillable prospects.''
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