Frontera Energy Corporation has executed a six-month extension agreement with Perupetro S.A. with respect to the temporary service contract on Block 192 in Peru (the "Block"). The contract, which was due to expire on March 2, 2020, has been extended to September 2, 2020. The extension will help sustain production from the Block while the process relating to the award of a new long-term contract for the Block is completed, which is expected in 2020.
Recent production on the Block has been approximately 7,100 bbl/d. The execution of the contract extension will enable Frontera to undertake a workover and well service program which is expected to return production levels near 8,500 bbl/d in the coming weeks. Production during the term of the current service contract has been inconsistent due to intermittent NorPeruano pipeline availability and community disruptions. Production on the Block during periods of normal operations has been approximately 8,500 bbl/d.
The Company remains committed to conducting its operations in Block 192 in a socially and environmentally conscientious manner, while continuing to invest in solutions to meet the needs of the communities where it operates through its Social Investment Plan, working in conjunction with local, regional and federal institutions in Peru.
