Special Operating Contract Signed by Manas for Tranquillo Block in Chile
Manas Petroleum Corp., a Baar, Switzerland based company, today announces its wholly owned subsidiary, Manas Energia limitada Chile (Manas) and Improved Petroleum Recovery Tranquillo Chile (IPR), has signed on April 30th a "Special Operating Contract" (CEOP) with the Chilean government in Santiago de Chile. The televised ceremony was chaired by the Chilean President Mrs. Michelle Bachelet. Under Chilean law the council of ministers must ratify the contract. This formality is expected to be completed during Q2 2008.
The CEOP comprises the onshore Tranquillo Block by ENAP (Empresia Nacional del Petroleo-Chile) which covers approximately 6700 square kilometers. The block, which is the largest among 10 exploration blocks offered in this bidding round, is situated in the Magellan's Basin in the southern part of Chile. Manas and IPR won the bidding for the Tranquillo block on November 15th 2007. Manas and IPR are both holding 50% of the project. IPR is the designated operator.
The Petroleum system in the Tranquillo block is proved with the gas field Tranquilo and with the wells Esperanza 1 and Manzano wells. There are four wells in the Esperanza structure all with gas and condensate shows. The Magallanes basin has 417 Km network of gas pipelines that connect the main fields to consumption centers, such us Methanex, the world largest metanol plant, besides the state oil company ENAP has four plants in the basin the largest, Cabo Negro produces LPG from natural gas and has a capacity of 2,930 m3 per day. Cumulative production in the Magallanes totals (m3) 63,934,010 oil and (million m3) 232,416 natural gas.
IPR and Manas committed a three-phase exploration program which covers a total investment of 33.24 mio $. Within the first phase of three years the consortium committed 14.36 mio $ for seismic (360 KM of 2-D and 160 square kilometers of 3-D) and drilling (6 Exploration Wells).