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.
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