Veraz Petroleum Ltd. says that a one year drilling contract has been signed with the Peruvian drilling contractor, Petrex S.A., for the drilling of up to three wells on Block 126 in east central Peru.

The Company and its partner, Petrominerales Ltd., anticipate drilling operations will commence early in the third quarter of 2011 with the spud of the La Colpa 2X well. This location, selected on a proprietary 3D seismic survey completed in December 2009, is situated roughly two kilometers north of the La Colpa 1X well which was drilled in 1989 by Occidental Petroleum Corp. and tested oil from four different intervals.

Following completion of the La Colpa 2X well, the rig will be moved south west to drill on a large, untested feature known as the Sheshea structure. Finally, the rig is anticipated to drill a third location, the La Colpa Norte, north of La Colpa 2X, to further investigate the size of the resource on that structure.

Tags: Veraz Petroleum Ltd.