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Clontarf's Peruvian play attract suitors

Friday, November 02 10:16:23

Clontarf Energy, the Irish AIM listed oil and gas exploration company, is in advanced discussions with a number of parties interested in buying a stake in the company's 100pc owned Blocks 183 and 188 in Peru.

Block 183 which is located in central Peru covers 396,826 hectares while Block 188 in southern Peru covers 595,809 hectares and is located only 100kms north east of the Camisea gas field. Clontarf's reworking of existing data on both blocks further defined targets and recent discoveries by Petrominerales, Repsol and Petrobras in adjoining and nearby blocks has resulted in a number of parties seeking partnerships with Clontarf Energy on the blocks.

"Clontarf Energy has about one million hectares of prospective acreage in Peru. There are proven oil & gas systems in both blocks, with multiple oil and gas prospects already worked up. We have completed the necessary environmental and community relations workshops throughout the two blocks without difficulty or incident," said David Horgan, Managing Director.

"We are in partnership discussions with several players, some interested in Block 183, and others in Block 188. Some potential partners already operate in Peru, which has facilitated commercial discussions. Others would be new entrants into Peru and therefore need to familiarize themselves with the technical, legal, and operating environment. Most likely we will have one partner for Block 183 and another for Block 188. Block 183 has also generated immediate interest from power generation and gas distribution companies seeking development rights to downstream projects."

"We are also considering a proposal for a partner to take a minority position in our Peruvian operations, with an option to take a majority operating stake within a year. Our overriding aim is to maximise the long-term shareholder value of Clontarf Energy," said Mr Horgan.

"Our focus in Block 188 is on the oil-prone leads and prospects, which offer an even higher price and easier market access. We are hunting for elephant-type structures and estimate recoverable resources at 500 million barrels plus. Few countries offer the compelling Peruvian mix of established hydrocarbon systems, large block size, growing local and export markets and attractive fiscal terms."