Perenco Signs as Operator for 5 Exploration Licenses Offshore Brazil

Perenco has reported the signature as Operator of 5 Exploration licences in the deep water sector of the Espirito Santo basin of Brazil. The award of Blocks ES-M-416, ES-M-418, ES-M-472, ES-M-529, and ES-M-531, each covering an area of 720 square kilometres, calls for the acquisition and processing of 2D and 3D seismic followed by the drilling of a minimum of 2 wells in the initial 4 year term.

These exploration blocks offer a range of play types, prospects and leads which are on trend with the Golfinho light oil field which is scheduled to reach a plateau production level of 200kbopd in 2008. Water depths for the obligation wells will be in the order of 1500 metres.

Perenco's partner in these licences is OGX Petroleo e Gas Ltda., a Brazilian E&P company led by former executives of Petrobras. OGX holds a 50%, non-operated interest in the Espirito Santo licences.

This success represents Perenco's fourth new country entry for an Exploration venture in the last 6 months. This follows the award of the Sindi-Amedi licence in the Kurdistan Region of Iraq, signature of two Production Sharing Contracts in Belize and the recent acquisition of Barrett Resources which has interests in Blocks 67 and 121 in Peru.

These ventures demonstrate the intent to grow the Company through Exploration in new regions as well as in established countries. The combination of these licences, plus any awards from other new venture efforts that are currently underway, will continue the process of replenishing the portfolio for the next generation of exploration drilling.