Peru evaluating planned offload by BPZ

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Thursday, September 24, 2015

Plans by BPZ Exploration & Production to release its Peruvian onshore acreage are under review by local sector authorities.

The company aims to cede its 100% stakes in northwest exploration blocks XIX, XXII and XXIII to Upland Oil & Gas, according to information from hydrocarbons licensing authority Perupetro.

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Parent BPZ Resources in March filed for bankruptcy protection and this month submitted a plan of liquidation.

In Peru, Upland already holds northwest exploration block XXIV, while BPZ operates producing northwest offshore block Z-1.

Northwest acreage map (CREDIT: Perupetro).

Perupetro also reported that Cepsa Peruana filed a technical evaluation agreement (CET) and that Northern Hydrocarbon expressed interest in a CET, which entails geological and geophysical work in areas with little information. The areas the CETs would cover were not disclosed.

In a related development, the government published a decree that approves Vale Oil & Gas' farm-out of its 70% stake in northwest exploration block XXI to Gold Oil Peru, which will hold 100% of the area.

Perupetro and the companies are now authorized to sign the contract modification.

Vale has no other acreage in Peru, while Gold Oil already holds exploration northwest offshore block Z-34.