www.clontarfenergy.com
Clontarf Energy plc is an emerging oil & gas Exploration & Production company focused on Africa and South America
Clontarf Energy operates high potential exploration properties:
* 60% of Ghana Tano 2A block - a 1,532km2 Block close to 4 recent Tullow Oil plc / Kosmos discoveries
* Awarded two exploration blocks in Peru in October 2010 bid round - in key producing Maranon / Ucayali basins Potential lithium concessions in Bolivia in cooperation with state (Memorandum of Uderstanding) Ongoing discussions for additional oil and gas exploration opportunities in other prospective South and Central American countries
Clontarf Energy finalises exploration contracts on 2 blocks in Peru; shares soar
Clontarf Energy PLC (LON:CLON) shares soared on news it has signed exploration and development contracts on two blocks in Peru.
The licences which were awarded in the October 2010 tender round, were approved by official decree in July 2011 and were signed this week by the president of the state oil company, Perupetro.
The shares shot up nearly 15 percent in reaction to the news, trading at 3.88 pence at 10.20 am.
Block 188 consists of 595,809 hectares of prospective ground close to the world-class Camisea producing field which is estimated to contain 16 trillion cubic feet of gas and 400 million barrels of condensate.
The directors believe the block has Camisea-type potential and is also prospective for medium-size shallower fields.
There are 13,400 kilometres worth of 2D seismic data and 50 wells' log data available for the region, and there is good but old seismic coverage on the block as well as data on three wells drilled very close to the block.
Furthermore, three main producing reservoirs exist in the wider area and an undeveloped oil discovery at neighbouring La Colpa.
Block 183 consists of 396,826 hectares in the Marañon Basin, which has produced since the 1940s. The block is located beside existing production, two oil fields and one gas field, and the directors believe that any future discovery on this block could connect to the existing gas and oil/condensate transport infrastructure.
Extensive historic seismic data is available: 1,700 kilometres of 2D, which has been recently re-processed and is of good quality.
Clontarf has already identified leads and prospects from reprocessing seismic, and the company plans to to complete first phase geology and geophysics work by the end of 2012.
Peruvian fiscal terms are attractive, with a combination of royalty and taxes. Work programmes are reasonable and bonding requirements acceptable at US$135,000 per block.
The government take is proportional to overall field profitability: the total effective state take is approximately 50 percent of revenue.
Managing director David Horgan said: "Peru is an excellent country for hydrocarbons. It has produced oil for a century but much of the interior remains unexplored. There is now a developed oil & gas infrastructure close to both blocks. Both areas are peaceful. Peru's economy is growing quickly and there have been open and fair elections. Perupetro, the state oil company, is a highly professional partner and a pleasure to work with.
“Our technical team is already off to a running start. We have acquired historic regional data and have begun working up drillable prospects,'' he added.
