Global Offered Rights To Massive 4,858km2 Highly Prospective Oil And Gas Block In Peru

Global Oil & Gas Limited (ASX: GLV) (Company) is pleased to announce that is has been offered a Technical Evaluation Agreement (TEA) for a 4,858km² oil and gas exploration block offshore Peru. The Company will hold 80% of the TEA with project partner, US based oil and gas exploration company Jaguar Exploration, Inc. (Jaguar), holding the remaining 20%.

Highlights

• Global has been offered the rights to a 4,858km² oil and gas block in proven hydrocarbon bearing basins offshore Peru, boarding the prolific (+1.6 Billion Barrels produced) Talara basin (TEA LXXXVI previously Z-70)
• The Company and Jaguar Exploration, Inc (US based partner) will now move to finalise formal agreements with Perupetro (the Peruvian national oil regulator) for its 100% interest in the block (80% Global and 20% Jaguar)
• Previous production of 4,000 bopd at the excised Corvina field incorporated within the block
• Located immediately south of the block is the Alto- Pena Negra oil field, one of Peru’s most productive fields, currently producing around 3,000 bopd with total historical production of more than 143 million barrels of oil
• Historical corporate transactions in the region of up to US$900 million Dollars
• Data from 7 historical 2D seismic campaigns and more than 3,800km² of historical 3D seismic has been secured
• No significant expenditure commitments for the TEA
• Global aim to generate Prospective Resources to facilitate potential third-party investment and/or farmin

Fig 1. TEA LXXXVI location

Managing Director Patric Glovac commented:

“Being offered this globally significant 4,858km² (over 1.1 million acres) offshore oil and gas opportunity in Peru has the potential to be transformational for the Company.

The nearby oil discoveries and petroleum refinery close to the offshore block make this an enviable address for global oil and gas players. Seven 2D seismic surveys and more than 3,800km² of 3D seismic has been received and is now being processed to identify leads, prospects and Certified Prospective Resources.

The Company is in the process of creating a comprehensive data room to facilitate the process of marketing this opportunity to prospective project investors and/or joint venture partners.

This world-class asset is an incredible opportunity for the Company to comprehensively collate all existing information, generate certified Prospective Resources and generate compelling drill targets

We look forward to finalising the formal agreements over the coming weeks with both Jaguar & Perupetro”.

The Company and Jaguar have been considered as a “Qualified Subjects” by Perupetro (the Peruvian national oil regulator) and can now assume obligations for one hundred percent (100%) participation in a Technical Evaluation Agreement (CET) on area LXXXVI, subject to formal contracts being entered into between the parties and Perupetro which is expected to occur over the coming weeks.

The oil and gas block is located in the gulf of Guayaquil in water depths that range from 100m to 1,500m, straddling the Tumbes-Progreso and Talara basins. Both basins host historical producing oil and gas fields, with the latter incorporating one of Peru’s most productive hydrocarbon plays.

Fig 2. Tumbes-Progreso and Talara Basins

The block is surrounded by, and incorporates, multiple historic and currently producing oil and gas fields. The southeast of the block borders the Alto-Pena Negra oil field which is one of Peru’s most productive fields, currently producing around 3,000 barrels of oil per day (bopd) and with total historical production of more than 143 million barrels of oil.

In the northeast, the block incorporates the excised Corvina oil field which generated past production rates of up to 4,000 barrels of light oil per day (28.45⁰ API).

The southern border of the TEA is also only 70km from the Talara crude oil refinery which received production from the Corvina field.

Exploration Opportunity

Historical exploration over the TEA has been intermittent with a clear misalignment between seismic and the drilling of the exploration wells. Three early 1970s wildcat wells, drilled before the running of any seismic, encountered oil and gas followed by only one more exploratory well three decades later after the running of seven 2D and four 3D (3,800km²) seismic campaigns.

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