Perupetro has invited Gold and its joint venture partner, Plectrum Plc, to start exclusive negotiations to finalize the details of an exploration license covering Block Z-34 offshore Peru. Gold expects that the contract will be signed and approved by Perupetro within weeks, with formal approval by Peru’s minister of energy and mines sometime later.
On May 8, 2006, Plectrum announced that it had agreed to form a joint venture with Gold in respect to Block Z-34, jointly giving notice to convert Gold's existing promotion agreement into a 30-year exploration and exploitation license. Final completion of the transaction was subject to the qualification of both companies asapproved contractors and the negotiation and approval of the exploration license terms by the Peruvian authorities.
Gold also said that on Monday of this week it spudded the San Alberto-1X exploration well on Block XXI, onshore Sechura Basin in northwest Peru. The well is the first on the block and is targeting gas at less than 3,500 feet in the Verdun reservoir, producing gas in the nearby La Casita field, and oil in the deeper Palaeozoic that is producing oil in the San Pedro oil field. Gold said that total depth of 6,500 feet should be reached in approximately 3 weeks.
“This is excellent news for Gold in our new joint venture with Plectrum,” said Gary Moore, Gold’s managing director. “I look forward to speedy negotiation of the contract terms so that we can become operationally active as soon as possible and commence exploration activity on Block Z34. It is also very important to Gold that exploration drilling has started in such a short time since the license was ratified on the 4 of April 2006.”
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