Global Energy Development has reported that the Peruvian government has officially approved and authorised the assignment of 60% of the Peruvian Block 95 Licence Contract to Gran Tierra Energy through Supreme Decree No. 050-2011-EM published on 29 December 2011.

In late 2010, the Company entered into an agreement to farm-out 60% of its interest in the Contract to GTE. Under the terms of the farmout agreement, GTE was to become the Operator of the Contract, subject to and following approval from the Peruvian authorities, and would assume 100% of the costs of an exploration well up to a maximum of US$ 15 million. Global retains a 40% interest in the Contract through its wholly-owned subsidiary. The Contract area is located in the Marañon Basin of north-eastern Peru.

In December 2011, GTE announced its near-term intentions for the Block 95 Contract in its 2012 Capital Program release, 'Upon PeruPetro approval of assignment of interests to Gran Tierra Energy, the company plans to drill one exploration well in Block 95 in the second half of 2012. The contract area contains the Bretaña-1 well, which was drilled in 1974 and tested 18° API gravity oil on natural flow rates of approx. 800 barrels of oil per day.'

Tags: Global Energy Development