Pacific Stratus Inks Deal for Peruvian Blocks
Pacific Stratus has officially signed the Exploration and Production Contracts for Blocks 135, 137 and 138 with the Peruvian Government in a ceremony hosted by Peruvian President Alan Garcia. These blocks, which are located in the Maranon Basin and total 1,883,553 hectares, were awarded to Pacific Stratus through a bidding process organized by Perupetro in July 2007. The main criteria used for the company's selection of these blocks were the size of the potential resources, the proximity to existing transport infrastructure and the economics of the projects. The commitments for the first exploration phase include regional studies and seismic acquisition. Upon successful completion of phase one, the company has the option to continue the exploration program with additional seismic acquisition and drilling one well for each block.
In Colombia, the company recently signed an agreement with Petro Rubiales to utilize Pacific Stratus's storage and pipeline facilities at the Guaduas field to transport up to 20,000 barrels of oil per day (bopd) of Rubiales blended crude to the export port of Covenas. Pacific Stratus expects to obtain a net margin of approximately US$2 per barrel from this throughput agreement, which has been structured in two phases - in phase one, which commenced last week, the company will handle up to 4,000 bopd, while phase two will provide a total throughput capacity of 20,000 bopd. Phase two will commence at the end of the first quarter of 2008 upon completion of new unloading facilities.
At the LCD-1 well located at La Creciente, Prospect D, drilling has reached 7,600 feet within the Porquero formation and is expected to reach the top of the Cienaga de Oro reservoir at 10,583 feet by mid-December.
- Petro Rubiales Completes Acquisition of Pacific Stratus (Jan 23)
- Petro Rubiales and Pacific Stratus Amend Share Exchange Ratio (Jan 15)
- Pacific Stratus Discovers Gas in La Creciente Block, Colombia (Jan 03)