September 26, 2018 | 12:07 am
PXP ENERGY Corp. said an exploration
block in Peru in which a subsidiary has participating interest had been removed
from its force majeure status after recent changes in the hydrocarbon law in
the foreign country.
In a disclosure to the stock
exchange on Tuesday, the company cited a corporate update from Karoon Gas
Australia Ltd., an international oil and gas exploration company with projects
in Australia, Brazil and Peru.
“Karoon has been positively impacted
by recent changes to the hydrocarbon law in Peru, which has resulted in force
majeure being lifted from Block Z-38. Karoon has been actively working with the
Peruvian authorities with this outcome in mind, and considers these changes as
a step forward for exploration in Peru,” the Australian company said.
PXP Energy holds a 53.43%
controlling interest in Pitkin Petroleum Ltd., an upstream oil and gas company
registered in the United Kingdom with operations in Peru. Pitkin’s asset is a 25%
participating interest in Peru Block Z-38 located in offshore Tumbes Basin,
Peru.
Karoon said along with its new
farm-in partner Tullow Oil Peru Ltd., they were moving forward to drill
Marina-1 exploration well during early 2020. The block was under force majeure
since September 2013.
“The well will test the Marina
Prospect which has a best case gross prospective contingent resource of 256
mmbbls (million barrels) at 100% interest (102 mmbbls net to Karoon),” it said.
“This will be the first well drilled
in Block Z-38. The block sits in the heart of the Tumbes Basin, adjacent to the
prolific oil producing Talara Basin which has produced 1.7 billion bbls to
date. The Tumbes Basin has a proven working petroleum system and evidence
suggests the prospects in Block Z-38 are accessing the same source rocks as the
giant onshore Talara Basin fields,” Karoon said.
It said the block has a best case
gross unrisked prospective resource of 1,373 mmbbls at 100% in 20 leads and
prospects.
It described its partner Tullow as
having “a long established” track record for exploration and that both
companies recognize the high impact of the Marina-1 exploration well in opening
up offshore exploration in the Tumbes Basin.
On Tuesday, shares in PXP Energy
dropped 2.76% to close at P15.50 each. — Victor V. Saulon
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