Update on Peruvian Operations

RNS Number : 7304Q

Clontarf Energy PLC

22 June 2015

 

22^nd June 2015

Clontarf Energy plc

("Clontarf" or "the Company")

Update on Peruvian Operations

Clontarf Energy plc holds a 3% over-riding royalty in Peruvian Block 183 in the central Peruvian forested foothills.  This 3% over-riding royalty is capped at US$5 million per oil and / or gas discovery and US$10 million in total.  This block was won by Clontarf Energy's Peruvian subsidiary in the 2010 bid round, signed in 2011 and farmed out to Peru Oil & Gas Exploration Limited ("POGEL") in August 2013. We are pleased to report that POGEL has now attracted a leading partner to further exploration of the block and development of any commercial oil or gas discoveries.

Union Oil and Gas Group ("UOGG"), a subsidiary of Union Group, a privately held company that invests in natural resources and infrastructure in Latin America, has acquired control of 80% of Hydrocarbon Exploration Peru Ltd ("HEPL"), a British company which owns 100% of Peruvian onshore oil and gas Block 183 in the Marañon Basin.

UOGG now has the principal role in all technical decisions regarding HEPL, a qualified exploration and production company that is qualified by the Peruvian authority Perupetro, and its asset Block 183.

The Block contains up to 2.2 TCF of whole recoverable potential gas reserves and a high probability of C5 condensates. It has two oil and gas prospects in anticlines associated with the Sarayaquillo sandstones (Chipurana and Alfaro) located in the Marañón Basin, which has produced oil and gas since the 1940s, close to the border of the Ucayali Basin.

The block covers 396,826 hectares, has good transport infrastructure and is located next to two oil fields and one gas field in adjacent blocks.

Union Group is a privately owned investment holding company specialised in natural resources and infrastructure investments in high growth, underinvested Latin American countries. In Peru, Union Group is also developing a hydropower portfolio of close to 1,000 MW of combined capacity. Among Union Group's investors are North American, European and Asian institutions, including Dundee Corporation, which since 2013 owns 40 per cent of Union Group. Union Group has an estimated combined value of approximately US$1 billion.

For further information please visit http://clontarfenergy.com or contact:

Clontarf Energy plc

John Teeling, Chairman                                                               [phone]

David Horgan, Director

Nominated Adviser and Broker

Northland Capital Partners Limited

David Hignell / Gerry Beaney                                                       [phone]

John Howes / Mark Treharne (Broking)

Public Relations

Blytheweigh                                                                                [phone]

Tim Blythe                                                                                    [phone]

Halimah Hussain                                                                          [phone]

Camilla Horsfall                                                                            [phone]

PSG Plus

Aoife Ross                                                                                    [phone]

Alan Tyrrell                                                                                   [phone]

 

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