By the OGJ Online Staff
HOUSTON, Oct. 3 -- Perez Companc del Peru, Argentina, signed an exploration and production license with Perupetro, the state oil agency, for Block 99 in Peru's Ucayali basin.
Perez Companc will at minimum reprocess 900 km of 2D seismic lines and drill four exploration wells. The $35 million work program will be divided into five stages over a 7- year period.
A clause in the contract makes Perez Companc eligible for future incentives, such as lower royalties or other measures currently under consideration by the Peruvian government.
Perez Companc is part of the Petcom Energia consortium.
The 1.15 million-hectare block is directly north of Blocks 34 and 35, which Perez Companc is exploring in a 50/50 agreement with Repsol YPF SA, Spain, the operator of both blocks.
Meantime, Syntroleum Corp. in partnership with BPZ & Associates Inc. initialed a draft contract with Perupetro for a license in offshore block Z-1, with plans for a gas-to-liquids plant.
Previous exploration by Perez Companc indicated gas reserves in that block. The draft contract requires approval from Perupetro's board of directors and by government authorities.