BOIL.L Regulatory News (BOIL)

7 Dec 2006 07:01

Plectrum Petroleum PLC07 December 2006 PRESS RELEASE For immediate release: 7 December 2006 Plectrum Petroleum Plc ("Plectrum", "The Company", or "The Group") Plectrum and Gold Oil receive Perupetro approval for exploration contract offshore Peru Plectrum Petroleum is pleased to announce that it has received approval fromPeru's government-owned oil company Perupetro SA (Perupetro) for an Explorationand Exploitation Contract covering Block Z-34, Offshore Peru, in conjunctionwith its Aim-listed joint venture partner Gold Oil Plc. The two companies have been in exclusive negotiations with PeruPetro to convertGold Oil's previous Promotional Licence into a full Exploration and ExploitationContract, with Plectrum taking a 50 per cent interest. PeruPetro approved the 30year contract on 5 December 2006. Final formal approval from Peru's Minister ofEnergy and Mines is expected to follow in the New Year. Plectrum announced that it had agreed to form a joint venture with Gold Oil inrespect of Block Z-34 on 8 June. Mike Whyatt, Plectrum's Executive Chairman, said: "We are delighted to have received approval from Perupetro. Final approval fromthe Minister of Energy and Mines in the New Year will allow us to embark on ourinitial work programme of acquiring a modern 2D seismic grid andelectro-magnetic studies. Block Z-34 is adjacent to existing shallow water production concessions in theTalara Basin, however exploration in the block to date has been minimal. BlockZ-34 fits our strategy of seeking out underexplored offshore explorationopportunities that can be significantly de-risked before drilling by theapplication of innovative technologies such as electro-magnetic imaging" ENDS For further information, please contact: Plectrum Petroleum Plc 01330 826 710Mike Whyatt, Executive Chairmanwww.plectrum.co.uk Aquila Financial LtdPeter Reilly 020 7202 2601Ross Bethell 020 7202 2603www.aquila-financial.com Corporate Synergy 020 7448 4400Oliver CairnsDavid Seal Notes to editors: Block Z-34 sits in the prolific Talara Basin which has produced to date inexcess of 1.7 billion barrels of oil and 340 billion cubic feet of gas. The3,713 km(2) block (equivalent to 14 North Sea Blocks) sits adjacent to existingproducing concessions in water depths of 100-3000m, yet has a sparse existingdata set of just 500 km 2D seismic. The initial work programme will be toacquire a conventional modern 2D seismic grid and enhance these data withElectro-Magnetic (EM) studies. Plectrum Petroleum Plc is an AIM-listed exploration and production company, based in Aberdeen, Scotland. Plectrum's strategy is seek out offshore exploration activities around the globe that can be significantly de-risked before drilling by the application of innovative technologies such as electro-magnetic imaging. Plectrum's portfolio of assets include: Petroleum Exploration Permits for two large frontier areas (WA-379-P and WA-380-P) offshore Western Australia; 50 per cent interest and operatorship of the Nabeul Block, offshore Tunisia and its joint venture with Gold Oil Plc in Block Z-34, offshore Peru. This information is provided by RNS The company news service from the London Stock Exchange