Clontarf Energy set for €220k Peru deal boost

Clontarf Energy could earn up to €220,000 out of a 3% stake in a Peruvian exploration block following an agreement between Rurelec and Peru Oil and Gas.

The deal will see Rurelec purchase an exploration block in South America when gas is found. Rurelec will buy the block from Peru Oil and Gas Exploration.

Clontarf energy has a 3% royalty on production from any commercial discovery in exploration block 183 capped at 3% of $10m or e220,000.

Gas recovered from the exploration block will be used to generate electricity in an Amazonian region in northern Peru.

The Rurelec PLC announcement said that the development of the power station will go ahead once the gas find has been confirmed.

“Rurelec PLC, the owner, operator and developer of power generation capacity internationally, announces that it has been granted the exclusive right to develop a gas-fired power plant in the Amazonian region of Northern Peru using potential gas from Block 183. Development of the power plant, which is initially planned to be 120MW based on two aero-derivative gas turbines, will be conditional on suitable gas reserve figures being substantiated, since the proposed plant is on an isolated gas field rather than linked to an existing gas pipeline.”

Rurelec is proceeding with the initial design and engineering works for the Block 183 power project following the signature of an agreement with Peru Oil and Gas Exploration Limited, which owns the rights to Block 183.