Wednesday, September 26, 2018

PXP Energy says force majeure lifted from Peru oil exploration block


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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