08 May 2006
Plectrum Petroleum Plc ("Plectrum" or the "Company")
Plectrum signs Joint Venture Agreement with Gold Oil Plc for Block Z34 Offshore Peru
Plectrum is pleased to announce that it has agreed to form a joint venture with AIM listed Gold Oil Plc in Block Z34, offshore Peru. The two companies have jointly given notice to the authorities to convert Gold's existing Promotion Agreement into a 30 year Exploration & Exploitation Contract. Under the terms of the joint venture Plectrum will carry Gold through the initial seismic phase of the work programme to earn a 50% working interest.
Block Z34 sits in the prolific Talara Basin which has produced to date in excess of 1.7 billion barrels of oil and 340 billion cubic feet of gas*. The 3713 km2 block (equivalent to 14 North Sea Blocks) sits adjacent to existing producing concessions in water depths of 100-3000m, yet has a sparse existing data set of just 500km 2D seismic and no wells. The initial work programme will be to acquire a conventional modern seismic grid and enhance these data with marine magnetotelluric (MMT) and Electro Magnetic (EM) studies.
Final completion of the transaction is subject to the qualification of both companies as approved contractors and the negotiation with and approval of the Exploration Contract terms by the Peruvian authorities.
Mike Whyatt, Plectrum's Executive Chairman, commented:
"I am delighted that our strategy of building a portfolio of assets, in areas where the application of innovative new exploration technologies can significantly enhance predrilling resource assessments, is finally bearing fruit. The Peruvian continental shelf is just such an area and we look forward to working together with Gold to evaluate this highly prospective yet vastly under explored offshore block."
For further information, please contact:
Plectrum Petroleum Plc
01330 826 710
Mike Whyatt, Executive Chairman
Mike Evans, Chief Operating Officer
www.plectrum.co.uk
Corporate Synergy
020 7448 4400
John Prior
David Seal
Aquila Financial Ltd
020 7202 2600
Peter Reilly
Vivienne Macey
www.aquila-financial.com
* Higley D (2004), The Talara Basin Province of Northwestern Peru:
Cretaceous-TertiaryTotal Petroleum System: U.S. Dept. of the Interior, U.S. Geological Survey Bulletin 2206-A
Notes to editors
Plectrum Petroleum Plc is an AIM listed exploration and production company.
Plectrum's strategy is to seek out offshore exploration activities around the globe that can be significantly de-risked before drilling by the application of innovative electromagnetic (EM) imaging technology.
Since incorporation, Plectrum has focused on researching and quantifying a wide range of acquisitions and establishing the Company as an industry player. A number of applications have been made, and are in progress, for rights to exploration acreage around the world including in the UK, Peru, Africa and Australia.
The Talara Basin
The Talara Basin province is located on the continental shelf along the northern coast of Peru.
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