La Pampa Awards Ayala II, III Blocks

Argentina's La Pampa province has awarded exploration concessions for the Gobernador Ayala II and III blocks to the Argentine subsidiaries of Canada's Petrolifera (TSX: PDP) and Petro Andina Resources respectively, the provincial government said in a statement.

Petrolifera, one of four bidders for the 207 sq km Gobernador Ayala II block, offered 960 work units each valued at roughly US$10,000 and a 25.5% royalty rate for the province. The tender had called for at least 200 work units and 18% royalties.

Investment must be carried out in the first two-year exploration period.

Petro Andina presented an offer of 1,750 work units and a 28% royalty rate for the 335 sq km Gobernador Ayala III block. The company was one of eight bidders for the block.

Exploration previously was carried out on the blocks as a result of tenders launched by Argentina's energy ministry.

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