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Clontarf encouraged by Peru oil find

Wednesday, October 24 11:24:24

Canadian exploration giant Petrominerales has announced a light-oil discovery in two zones of their Sheshea-1X well on Block 126 which is just 70kms northwest of Clontarf Energy's Block 188 in Peru.

This discovery is encouraging and relevant for Clontarf Energy's exploration efforts as the company believes that the oil discovery bearing structures, namely the Chonta and Agua Caliente formations in Petrominerales' Block 126 are also present in Block 188. The 1999 Panguana well on Block 188 had oil shows from the Chonta formation.

"We have been a long term believer in the potential of the southern Ucayali Basin. This belief is now vindicated by the Petrominerales discovery. This was the play our management team pursued when we previously acquired neighbouring Blocks 114 and 131 - which were subsequently sold to Petrominerales in 2010," said David Horgan, Managing Director of the Dublin-based prospector.

"It was also the logic behind Clontarf Energy's acquisition of Block 188 in 2011. The discoveries are one of four petroleum systems present in Block 188. Continuing exploration success in this part of Peru, allied to competitive fiscal terms, strengthen the attractions of investing in Peru".