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Clontarf Concludes Agreement on its Peruvian Blocks

Source: www.gulfoilandgas.com 5/15/2013, Location: South America

Clontarf Energy plc announces that it has concluded an agreement on its Peruvian oil and gas exploration Blocks.

Peru Oil and Gas Exploration Limited ("POGEL"), an energy investment company, will undertake responsibility to put up performance bonds and conduct contractual work on the Exploration and Development Contracts on Peruvian Blocks 183 and 188. POGEL will also assume the agreed Peruvian liabilities of Hydrocarbon Exploration Limited, a wholly-owned subsidiary of Clontarf Energy plc.

POGEL is a strategic investor in Peru and intends to develop thermal power generation, producing electricity from natural gas. Its objective is to drill out already defined gas-prone structures in Block 183, which is close to the growing town of Tarapoto. POGEL is also interested in the gas and oil prone structures in Block 188.

Under the Agreement, Clontarf Energy plc will convert its interest to an overriding royalty of 3 per cent on production from any commercial discovery. The royalty payments will be capped at US$5 million per structure, US$10 million per Block and US$20 million in total. The agreement is subject to regulatory approval.

Welcoming the news, Clontarf Energy plc's David Horgan, commented:
"We are delighted to have attracted a strategic investor that recognises the opportunity presented by Peru's large and fast growing gas market. During our work in nearby communities we have experienced power cuts and know that thermal gas-fired power stations offer the best solution to Peru's growing demand for energy.

"POGEL is committed to making quick progress on proving up resources and bringing gas reserves into production. This will benefit all stakeholders, including the local communities, the Peruvian Exchequer, and Clontarf Energy plc shareholders."

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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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