Clontarf in talks to sell Peru operations
The John Teeling-chaired company, which has its shares listed on London’s AIM, owns 100% of two licensing blocks in Peru, which is now the company’s chief geographical focus over Bolivia and Ghana.
The two blocks cover a combined area of nearly one million hectares and are partly situated near Peru’s existing Camisea gas field.
Clontarf is looking to move to the next level in Peru and needs outside funding to further develop its assets there.
The company said yesterday that it has attracted interest in both blocks and foresees farming out equity stakes to separate partners in each of the assets. It could also attract an overall equity partner for its ongoing Peruvian division
The company is hopeful of signing off on partnership agreements by the middle of 2013.
David Horgan, Clontarf’s managing director, described the Peruvian business as “a compelling gas opportunity”.
“There are proven oil and gas systems in both blocks, with multiple oil and gas prospects already worked up,” he said. We have completed the necessary environmental and community relations workshops throughout the two blocks without difficulty or incident.
“We are also considering a proposal for a partner to take a minority position in our Peruvian operations, with an option to take a majority operating stake within a year. Our over-riding aim is to maximise the long-term shareholder value of Clontarf Energy.”
One of Clontarf’s two Peruvian blocks has generated “immediate interest” from power generation and gas distribution companies, seeking development rights to downstream projects in the country.
The Irish company added that overall interest in the assets has come from a mix of international players and local companies, but declined to speculate on how much of a percentage Clontarf will still hold in each asset once the deals are signed.
