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Africa- and South America-focussed oil and gas exploration firm, Clontarf Energy plc (LSE:CLON), led the gainers by percentage on the London Stock Exchange earlier today following advance discussions of possible partnership to develop its two wholly-owned acreages in Peru.
The AIM-listed Clontarf gained as much as 40% by midday to 5.25 pence after saying that an integrated gas-condensate project can possibly be implemented to tap the 870 billion cubic feet of natural gas and 45 million barrels of condensate from Block 183 while Block 188 offers potential hydrocarbon deposit following discoveries in adjacent acreages that share similar structures with the said block.
The Right Address
“Clontarf’s Blocks have the right address,” said Clontarf’s Managing Director, David Horgan, in a statement, particularly referring to Block 188.
The nearly 400,000-hectare Block 183 contains the Pacaya field where, according to Clontarf’s technical team, can produce 75 million cubic feet of natural gas per day.
Clontarf plans to ink an off-take agreement and is now in advanced discussions with an unnamed European power generation company to install a 160-Megawatt power station.
In the approximately 600,000-hectare Block 188, Clontarf said it is negotiating a standard farm-out deal that will provide a carried working interest to perform a 200-kilometre 2D seismic, an environmental impact study, and one exploration well, with the company retaining a 50% operatorship interest.
“We are looking to cut industry deals that capture as much of our Blocks’ potential as possible,” Mr. Horgan added.
Both blocks are located within proven oil and gas systems and in close proximity to existing infrastructures that cross through different blocks, which, according to Clontarf, makes the investment very attractive due to its low cost potential should discoveries are made.
High quality oil of 36 degrees and 37 degrees API were recovered from discovery wells in surrounding blocks that bear the same geological structures as those of Blocks 183 and 188, based on the company’s technical report.
