CEPSA Signs Farm-In with Pan Andean Resources
CEPSA Peru S.A., a wholly-owned subsidiary of CEPSA, has signed a farm-in agreement with Pan Andean Resources PLC for CEPSA to acquire interests in two hydrocarbons exploration and production contracts in Peru for Blocks 114 and 131, located in the Ucayali Basin south of Pucallpa, in the central region of the country.
CEPSA will eventually assume operatorship of the Blocks and acquire a 60% working interest in Block 114 and a 70% working interest in Block 131, once it has obtained the required regulatory approvals from Perupetro (the Peruvian government agency responsible for promoting private investment in the hydrocarbons sector). Activity during the exploration period on Blocks 114 and 131, measuring 7,200 km2 and 10,000 km2, respectively, will include, during the initial phases, the performance of 2D seismic acquisition to identify possible structures existing in the subsoil, and subsequently the drilling of exploration wells.
CEPSA embarked on its exploration activity in Peru last year when it signed an agreement with ConocoPhillips to acquire a 35% stake in Block 104 in the Maranon Basin. Afterwards, the Company entered into a farm-in deal with the Canadian firm Loon Energy to acquire a 80% working interest in Block 127 in the same basin. As a result of these last two agreements signed with Pan Andean, CEPSA will expand its upstream portfolio and enhance its presence in Peru.
These new Blocks, which will be operated by CEPSA, are located in Peru's central Amazonian region, an area of considerable ecological value. The Company holds interests in other acreages with similar features and, in an effort to ensure environmentally-sound and responsible operations, has put into effect in each of them a broad program of measures in conjunction with local authorities and indigenous populations , chiefly targeted at avoiding any adverse impacts on the environment and, consequently, its biodiversity.
As part of its environmental strategy in ecologically-sensitive areas, CEPSA consistently identifies and evaluates the possible effects associated with its activities, making it a bellwether in terms of its awareness and respect for natural habitats and native populations. Furthermore, the Company is proactively involved in the restoration of habitats for indigenous species in areas where it operates and in the recovery of eroded and depleted ecosystems, some of which, thanks to CEPSA's aid and cooperation, are now classified as protected areas.
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