Hunt Signs E&P Contract for Block 76 in Peru

Madre De Dios, Peru
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Peru's hydrocarbons promotion agency Perupetro has signed an E&P contract with US oil company Hunt Oil (NYSE: HUNT) for block 76, Perupetro said in a statement.

The 1.4 million hectare block is located between Madre de Dios, Cuzco and Puno departments and will be the first directly operated by Hunt, the statement said.

Hunt's contract will last 30 years for the exploration and production of oil and 40 years for gas, and the company must invest US$40mn minimum to develop the block including seismic studies and drilling wells.

Hunt already has shares in Peru's blocks 88 and 56 as part of the Camisea consortium, and is also majority shareholder in the Peru LNG consortium planning the construction of a liquefied natural gas (LNG) plant for the export of the fuel.

The Camisea consortium has invested US$1.63bn in blocks 88 and 56, not including pipelines. Peru LNG plans to invest US$1.6bn in its works.

The Hunt contract was the second signed by the ministry this year, and after signing 15 contracts last year Perupetro aims to sign a record number in 2006.

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