Business
Re Joint Venture
Re Joint Venture.
About this update from Pensana Plc
[{"type":"text","content":"\n Pan Andean Resources PLC\n25 February 2008\n\n\n\nMajor Oil Group Joint Ventures Pan Andean Blocks 114 and 131 in Peru\n\n\nHighlights:\n\n\n\n> CEPSA to joint venture with Pan Andean on Peruvian blocks 114 and 131\n\n\n\n> Pan Andean to recover costs incurred to date\n\n\n\n> CEPSA to cover exploration costs including first well and half of second well\non both blocks\n\n\n\n\n\nPan Andean (AIM:PRE), the AIM listed oil and gas producer, is pleased to\nannounce that it has agreed terms on which CEPSA, a major international Spanish\nbased oil company, will joint venture Blocks 114 and 131 in the Ucayali jungle\nof Peru. Previous drilling proved a working oil system in the Blocks. The\njoint venture is part of the Pan Andean strategy to reduce financial exposure\nwhilst accelerating drilling plans in high potential blocks.\n\n\n\nThe agreement is subject to the regulatory approval of the Authorities. Once\nsuch approval is obtained, CEPSA will reimburse Pan Andean for all costs\nincurred to date, estimated at US$3m.\n\n\n\n\n\nPeruvian Block 114\n\n\n\nPan Andean will dilute its interest in Block 114 to 30%, in return for CEPSA\nincurring all exploration costs through the first well and half of the second\nwell.\n\n\n\nThe new ownership of Block 114 will be 30% Pan Andean, 10% CCP (a local private\nPeruvian company) and 60% CEPSA. CEPSA will operate the block.\n\n\n\nBlock 114 is situated in 1.8 million acres of jungle terrain, drained by\nnavigable rivers. Environmental preparation and permitting for seismic and\nwells are almost completed.\n\n\n\n\n\nPeruvian Block 131\n\n\n\nCEPSA is also joint venturing and will operate, the 100% Pan Andean owned\nneighbouring block 131.\n\n\n\nPan Andean will dilute its interest in Block 131 to 30%, in return for CEPSA\nincurring all exploration costs through the first well and half of the second\nwell.\n\n\n\n\n\nBlock 131 borders Block 114, immediately to the west. The Block covers 2.5\nmillion acres in the central Peruvian Amazonian jungle region. It is on trend\nwith oil discoveries, and includes two hydrocarbon shows and three oil seeps.\nThere is a producing oil field cut out of Block 131, operated by Maple of the\nUSA.\n\n\n\n\n\nDavid Horgan, Managing Director of Pan Andean Resources, commented:\n\n\n\n'CEPSA's joint venture is a convincing statement of the exploration pot...