Our Group first entered Peru in 2004, initially as Pan Andean Resources plc. These interests were sold at a substantial profit in 2010. In the subsequent 2010 bid round, Clontarf Energy won two attractive Peruvian blocks: Block 183 and Block 188 .
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We were pioneers in the Ucayali Basin, central Peru. In 2006 we signed an E&P contract for Block 114. Our technicians expanded our technical knowledge and pursued additional high potential exploration opportunities in Peru. We later signed 100% concessions on nearby Block 131, Block 161 as well as the Titicaca Basin Block 141. Block 114 and 131 were farmed out, on attractive terms to CEPSA of Spain. There has already been a subsequent discovery on this Block. Block 141 was farmed out on good terms to the Reliance Industries Group of India.
These interests, together with the recently acquired Block 161, were sold to Petrominerales (now Pacific Rubiales) of Canada for $32m 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. We bid for 3 blocks and won our two priority blocks Block 183 and 188.
Following the completion of the Peruvian work programme in 2013, Clontarf brought in a partner, POGEL, on the highly prospective Block 183, close to recent finds. Clontarf Energy has a 3% royalty in Peruvian Block 183, close to recent finds.
Block 183 is in the producing Marañon 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%.
At the time of writing negotiations to bring in a larger industry partner to drill out and develop the Block were underway.