Global Energy Development reported that its partner in the Peru Block 95 Area License Contract (Block 95), Gran Tierra Energy, Inc. (Gran Tierra Energy), a company focused on oil and gas exploration and production in South America, previously announced its financial operating results which included the following update regarding its activities and outlook for Block 95:

Block 95, Marañon Basin, Peru

A drilling site location has been identified for the first exploration well on Block 95, with civil construction expected to begin in the third quarter of 2011. Drilling is expected to begin in second quarter of 2012. An oil field has already been discovered on Block 95, with the discovery well drilled in 1974 flowing 807 BOPD naturally without pumps. The new exploration well will further delineate this field and will explore deeper reservoir horizons not penetrated by the discovery well.

In late 2010, Global entered into a farm-out agreement with Gran Tierra Energy with Global retaining a 40% interest in the Block 95 Contract. Under the terms of the agreement, Gran Tierra Energy will become the operator of the Block 95 Contract, subject to and following approval from the Peruvian authorities, and will assume 100% of the gross costs of an exploration well up to a maximum of $15 million. Approval from the Peruvian authorities of the change in operatorship is still pending but is expected to be finalised in the third quarter of 2011.

Tags: Global Energy Development