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Global Oil & Gas Limited (ASX: GLV) (Company) is pleased to provide the following report on its activities during the quarter ending 30 June 2023.
Peruvian Project
Global Oil & Gas Limited reported during the quarter that it 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%.
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 by the end of July 2023.
Fig 1. Tumbes-Progreso and Talara Basins
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.
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.
Technical Evaluation Agreement (TEA)
A Technical Evaluation Agreement (TEA) is an oil and gas contract that provides the holder with the exclusive right to negotiate a Licence Contract with PeruPetro (the Peruvian national oil regulator) over the TEA area, in return for the carrying out of greenfield exploration activities. There are no significant expenditure commitments over the two-year TEA period, however, it is anticipated that the Company will spend approximately $US250,000 during this period towards completing desktop studies and compiling available data in respect to the Block to identify potential prospects, consulting fees and costs associates with any farm-out process.
In essence the TEA provides Global the opportunity to develop and market the TEA with an inexpensive 2-year exclusive option to convert all or part of the expansive TEA area into one or more Licence Contracts.
Global Oil and Gas is participating in joint venture with Jaguar Exploration Inc on TEA LXXXVI.
About Jaguar
Jaguar is a leading independent geoscience company founded in 2000. Jaguar has been responsible for the compilation of all historic 2D and 3D data across the Tumbes and Talara Basins as well as the compilation of all historic well data (petrophysical logs and well/production data). From this information Jaguar has identified several oil and gas prospects and delineated an area of interest that now defines the TEA area. Given this is the core business of Jaguar GLV has relied heavily on their expertise to work up the prospect.
The consideration being paid is to remunerate Jaguar for the technical work undertaken to date at the project. This technical data is now available to the Company.
Jaguar (and its controller) is not a related party or substantial holder of the Company.
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This article includes content from Global Oil and Gas Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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