UK’s Baron Oil has nearly completed the transfer of 30 percent interest in Block Z-34 offshore Peru to its Latin American partner Union Oil and Gas Group (UOGG).
Baron Oil said on Thursday that the public deed transferring the interest from the company’s subsidiary, Gold Oil Peru, to UOGG was executed by the companies and the Peruvian oil and gas regulator PeruPetro.
The original farm-in transaction with UOGG was signed in April 2013 and approved in July 2016. Under the terms of the agreement, UOGG will pay Gold Oil Peru $2 million as a result of the completed public deed which finalizes the farming transaction.
Through the transfer of Gold Oil’s 30 percent interest, UOGG formally increases its stake to 80 percent while Baron Oil holds the remaining 20 percent. The required paperwork will be completed within the next ten days.
The interest transfer between the companies was completed several days after PeruPetro accepted a drilling plan and location for the Cuy offshore exploration well in the Z-34 block.
Block Z-34 in the Talara Basin is a host to three prospects, Cuy, Cuy Sur, and Daphne, all located in the northern part of the block. According to Baron’s estimates, the block holds a total of 885 million barrels of oil recoverable, 413 of which are estimated to be in the Cuy prospect.
As a part of the interest transfer agreement between the companies, UOGG is paying 100 percent of all the costs related to the block including the planned drilling of the exploration well.
Offshore Energy Today Staff