Gas Supply Contract Signed for Peru LNG Project

Hunt Oil Company, as operator of the Peru LNG Project, announced that Peru LNG has signed definitive agreements to purchase 620 MMCFD of gas from the consortium of companies that constitute the upstream license holders in the Greater Camisea area of Peru. The term of purchase agreements, which begin upon completion of the construction of the liquefaction plant in Peru, is for 18 years.

The natural gas purchased by Peru LNG will be utilized in the liquefaction plant which will be built on Peru's Pacific coast at Pampa Melchorita. Land where the liquefaction plant will be built has already been purchased by Peru LNG.

Once the natural gas produced from the Greater Camisea fields (to be supplied primarily from Block 56) is converted into liquefied natural gas (LNG), the LNG will be exported by ship to re-gasification facilities to be built by purchasers of Peru's LNG. Peru LNG is in advanced stages of negotiations with a number of potential purchasers and anticipates that final decisions associated with these negotiations will be made in the near future.

Discussions are also under way with Transportadora de Gas del Peru (TGP) relating to the transportation by pipeline of the natural gas purchased from the upstream license holders to Peru LNG's liquefaction plant at Pampa Melchorita.

Ray L. Hunt, CEO of Hunt Oil Company, said, "The finalization of these purchase contracts represents yet another important milestone in the rapid development of this project. All of the parties associated with the Peru LNG Project also wish to acknowledge the strong and active support which has been received from the Government of Peru from the beginning of this project. We all recognize that the Peru LNG Project will have very important and beneficial consequences for the people of Peru for generations to come."

Peru LNG is owned by Hunt Oil Company and SK Corporation. It is anticipated that additional equity participants will become shareholders of Peru LNG in the near future.

The upstream license holders who have contracted to sell gas to Peru LNG are Pluspetrol Peru Corporation S.A., Hunt Oil Company of Peru, SK Corporation, Sonatrach Peru Corporation S.A.C., and Tecpetrol del Peru S.A.C.