Peru

Our Group first entered Peru in 2006, initially as Pan Andean Resources plc. These interests were sold at a profit in 2010.

 

In the latest bid round (October 2010), Clontarf Energy won two attractive Peruvian blocks: Lote 183 and Lote 188 .

 

 

We were pioneers in the Ucayali Basin, central Peru. In 2006 we signed an E&P contract for Lote 114. Our technicians expanded our technical knowledge and pursued additional high potential exploration opportunities in Peru. We later signed 100% concessions on nearby Lote 131, Lote 161 as well as the Titicaca Basin Lote 141. Lote 114 and 131 were farmed out, on attractive terms to CEPSA of Spain. Lote 141 was farmed out on good terms to the Reliance Industries Group of India.

These interests, together with the recently acquired Lote 161, were sold to Petrominerales of Canada for cash in April 2010.

 

In October 2010, Clontarf Energy (then trading as interim vehicle 'Hydrocarbon Exploration') was qualified to bid on the maximum 4 blocks in the latest Peruvian bid round. By then, Peru's attractive geology, pro-business democracy, fiscal terms and secure title were recognised by the energy industry. The other qualified companies were larger groups.

We bid for 3 blocks and won our two priority blocks.

 

Lote 188 has Camisea type large gas & condensate potential at depth.

There is also scope for shallower medium-sized fields.

 

 

Lote 183 is in the producing Maranon Basin, and has scope for oil fields at moderate depth and deeper gas potential.

 

 

Successful discoveries could connect to existing oil & gas infrastructure.

 

Government take is proportional to field profitability: the most likely outcome is for a total state taxes, etc. of circa 50%.

 

There are reasonable work programmes and bonding ($200k per block).