Clontarf Energy plc
(“Clontarf” or “the Company”)
Update on Peruvian operations
• Joint Venture Negotiations on the Panguana area of Block 188
• Strategic partnership talks on Block 188 ongoing
Clontarf Energy plc (AIM: CLON) is pleased to provide an update on activity on its 100% owned Block 188 in Peru. This block in southern Peru covers 595,809 hectares and is located only 100 kms north east of the Camisea gas field.
Extensive work by Clontarf Energy on historical data, including a re-appraisal of a well drilled in the Panguana area of the block, indicates the possibility of an oil discovery in a previously drilled “commitment well”: i.e. a well drilled for contractual reasons only. The company has completed a detailed work programme for a re-entry of the well drilled in 1999. Clontarf is in discussions on this specific project with a number of potential partners in the oil industry. Detailed strategic partnership negotiations are also underway on the remainder of this prospective block, as well as the other licence held by Clontarf in Peru - Block 183, which covers 396,826 hectares in the north-central Peruvian jungle.
David Horgan, Managing Director, commented:
“Clontarf Energy was fortunate to have won Peruvian Block 188 - a large, highly prospective Block which was expected to be awarded to a major oil company. Block 188 is situated within 100km of the giant Camisea fields, which has an established oil and gas export infrastructure operating for over a decade – in which there is available capacity. There have been several additional recent significant discoveries nearby, by Repsol and Petrobras, and several extensions of the Camisea fields. As a result the access and infrastructure of the area has been steadily improving.”
“Block 188 includes the Panguana structure drilled by Phillips Petroleum (now ConocoPhillips) in 1999. Five horizons had hydrocarbons shows, but only one was tested in which 37 ° API oil was found.”
“Following the successful Phillips Petroleum Formation Test of the prolific “Green Sandstones” at the Panguana structure, we view the Panguana find as an appraisal / early development project, rather than pure exploration. The Repeated Formation Tester (RFT) was the only test tool employed during a rapid (40 day) well, which the operator viewed as a ‘commitment well’. Prior to drilling this commitment well, Phillips Petroleum had decided to relinquish the block because of the then low ($16) oil price, challenging fiscal terms and postponed development of Camisea given Shell’s withdrawal in 1996/97. Camisea had been seen as a necessary ‘anchor tenant’ for further, incremental exploration and development in what was then a remote area.”
“The context is now totally different, with a high oil price, a Camisea pipeline infrastructure in full operation, and a modern hydrocarbons contract system in place.”
“Although an appraisal well will have to be drilled to verify the result from the original well, we understand that Phillips’ on-site staff believed that Panguana's “Green Sandstones” held 31 million barrels of quality oil, with additional potential in other horizons. This calculation is a P50 estimate, meaning that there is a 50% probability of the actual recoverable reserves from that reservoir being equal or exceeding the estimate of 31 million barrels.”
“We plan to re-enter the Panguana structure to confirm the “Green Sandstone” reserves and test other horizons of interest, and proceed to early development of this exciting project. It is our expectation that funding will be provided by joint venture partners.”
This statement has been approved by senior geological consultant to the Company Jorge Flores, a qualified petroleum engineer from the University of Oklahoma.