Peru: Petrominerales to up Ucayali, Titicaca interests

Petrominerales Ltd., Calgary, will acquire Veraz Petroleum Ltd.’s 20% working interest in blocks 126, 141, and 161 in the Ucayali and Titicaca basins in Peru for $5 million in common stock.

Closing is expected in late July 2012 and is subject to approval by Veraz shareholders.

Petrominerales is moving a drilling rig to its Sheshea prospect on 2.6 million acre Block 126 in Ucayali. The block’s second exploratory well, it will probe a 10,000-acre closed structure 50 km south of the first exploratory well, La Colpa-2X. Also in Ucayali, Petrominerales is working on a revised environmental impact statement on 1.2 million acre Block 161 and will shoot 2D seismic in 2013.

Block 141 covering 1.4 million acres in Titicaca is under force majeure due to new government regulations that require further community consultations prior to obtaining permits. As a result, Petrominerales’ commitment to complete 300 line-km of 2D seismic by July 2012 has been suspended pending completion of the additional consultations.

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