TIDMCLON
RNS Number : 4959R
Clontarf Energy PLC
20 November 2012
20 November 2012
Clontarf Energy plc
("Clontarf" or "the Company")
Update on Peruvian exploration progress
STRATEGIC PARTNERSHIP NEGOTIATIONS ADVANCING
IN BOTH BLOCKS 183 AND 188
Clontarf Energy plc (AIM: CLON) ("Clontarf" or "the Company")
today announces an update on progress on its 100 per cent owned
Blocks 183 and 188 in Peru. Block 183 in central Peru covers
396,826 hectares. Block 188 in southern Peru covers 595,809
hectares and is located only 100 kilometres north east of the
Camisea gas field.
Clontarf Energy plc is advancing towards securing strategic
partnerships in both Blocks 183 and 188 in Peru.
Block 183:
The Company's negotiations to date have focused on the Pacaya
structure and the possible implementation of an integrated
gas-condensate project, with estimated prospective reserves of 870
billion cubic feet of natural gas and 45 million barrels of
condensate according to our latest most probable scenario.
Negotiations are complicated by the need to verify gas off-take
levels in order to justify upstream investment in required
exploration wells to confirm these resources. Clontarf is in
advanced discussions with a European power generation group, over a
projected 160 MW first phase power generation project, as well as
with a leading natural gas distribution group.
Clontarf's technical team foresees natural gas off-take in the
first phase of Pacaya production of 75 million cubic feet daily, of
which approximately 45 million cubic feet will go to power
production and 30 million cubic feet daily to other natural gas
distribution markets.
The Board of Clontarf expects that there will be a specific
agreement on the Pacaya structure. This would leave Clontarf Energy
free to explore the remainder of the 396,826 hectare Block 183.
Clontarf's geoscientists have already identified four additional
prospects: two with gas-condensate potential and two with oil
potential.
In the meantime, technical work progresses, with upcoming AVO
(Amplitude vs. Offset) analysis to be contracted with international
geophysical company ZEP-TECH. This work (which we expect would be
funded by a future partner) is intended to confirm and evaluate
amplitude anomalies found in three gas-condensate prospects,
including Pacaya.
These amplitude anomalies have already been proven in the
Shanushi 1X well (located 15 kilometers away from Pacaya), drilled
in 1975 by Germany's Deminex. High gas pressure was encountered in
the pre-Cretaceous Sarayaquillo and top Pucara formations.
Clontarf's experts believe that the Shanushi structure is directly
connected to the Pacaya prospect. Clontarf is also conducting a
further reprocessing of the seismic lines which connect Shanushi
with Pacaya in order to prove the extension of the natural gas
anomalies. A specialised technical study carried out by Fugro
Geophysical on behalf of Amerada Hess of the Shanushi well showed
potential recoverable gas reserves of over 1.3 trillion cubic feet
(TCF) and 69 million barrels of gas condensate, with a net pay of
almost 30 metres, which would considerably enhance the already
important Pacaya potential reserves.
Block 188:
In Block 188 the Company is mainly concentrating on working up
oil-prone targets. So far the negotiations have followed a more
standard farm-out format: the proposed carried work programme would
include an Environmental Impact Study and the acquisition of 200
kilometers of new 2D seismic. Clontarf has requested additional
dense-grid seismic lines, in order to confirm closure of large
structures on top of geological horsts related to rift depocentres
with main maturing zones during the Late Paleozoic era.
The Company also requires the drilling of one exploration well.
This technical work would be funded by the partner. In negotiations
to date, Clontarf Energy has proposed remaining as Operator,
retaining a 50 per cent operating interest.
Clontarf hopes that detailed, high-resolution seismic will
de-risk the 13 prospects and leads identified to date. The
Company's objective is to work up short-term drillable structures,
as well as to acquire more regional lines that will help establish
the prospectivity of Clontarf's eastern zone close to the Brazilian
shield outcrop, where giant stratigraphic trap accumulations could
exist.
Clontarf would reserve the right to re-enter the Panguana
structure, itself on top of a geological horst. This is an existing
oil discovery, drilled by Phillips Petroleum in 1999. The Company
estimates a potential reserve of 30-45 million barrels of 37 degree
API oil.
David Horgan, Managing Director of Clontarf Energy,
commented:
"Clontarf's Blocks have the right address. Our Block 188 is
surrounded by recent discoveries by Petrominerales last October in
Block 126, by Repsol last September in Block 57 and earlier by
Petrobras in Block 58. In addition Peru's growing power
consumption, high Latin American gas prices, and the Peruvian
Government's continuation of investment incentives, are all making
the territory extremely attractive.
"We are looking to cut industry deals that capture as much of
our Blocks' potential as possible."
________________________________________________________________________
This statement has been approved by senior oil industry
consultant Jorge Flores, a University of Oklahoma qualified
petroleum engineer.
________________________________________________________________________
For further information please visit http://clontarfenergy.com
or contact:
Clontarf Energyplc
John Teeling, Chairman +353 (0) 1 833 2833
David Horgan, Managing Director
James Finn, Finance Director
Nominated Adviser and Joint Broker
Shore Capital
Pascal Keane/Toby Gibbs, Corporate Finance +44 (0)20 7408 4090
Jerry Keen, Corporate Broking
Joint Broker
Optiva Securities Limited
Jeremy King +44(0)20 3137 1904
Jason Robertson +44(0)20 3137 1906
Public Relations
Blythe Weigh Communications +44 (0)20 7138 3204
Tim Blythe +44 (0) 7816 924626
Robert Kellner +44 (0) 7800 554377
Pembroke Communications
David O'Siochain +353 (0) 1 649 6486
This information is provided by RNS
The company news service from the London Stock Exchange
END
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