On 8 June 2006, Plectrum announced that it had agreed to form a joint venture with Gold in respect of Block Z-34, jointly giving notice to convert Gold's existing Promotion Agreement into a 30 year Exploration & Exploitation License. Final completion of the transaction was subject to the qualification of both companies as approved contractors and the negotiation and approval of the Exploration License terms by the Peruvian authorities. All negotiations and approvals have been successfully completed and the Supreme Decree for Block Z-34 has now been published in the Official Journal in Lima.
Mike Whyatt, Plectrum Petroleum's Executive Chairman, said:
"We are delighted to have received the Supreme Decree for the award of Z-34 and can now move forward with our plans to evaluate this prospective offshore Block."
Block Z-34 sits in the prolific Talara Basin, which has produced to date in excess of 1.7 billion barrels of oil and 340 billion cubic feet of gas. The 3,713 km(2) block (equivalent to 14 North Sea Blocks) sits adjacent to existing producing concessions in water depths of 100-3000m, yet has a sparse existing data set of just 500km 2D seismic. The initial work program will be to acquire a conventional modern 2D seismic grid and enhance these data with Electro Magnetic (EM) studies.
Plectrum has made a commitment to PeruPetro to "acquire, process & interpret 2,000km lines 2D seismic" during the initial 18 month license period. Plectrum's financial commitment to this program is £1.9mm, after which a decision will be made as to whether further onward investment in justified.
Plectrum now has offshore exploration interests in Tunisia, Peru, the UK and Western Australia.
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