Peru stake: for Cepsa
Cepsa takes Loon Peru stake
Spanish oil and gas company Cepsa said today its Peruvian subsidiary had acquired an 80% share of an exploration licence held by Canada's Loon Energy in the north-east of the country.
Under the agreement, signed in August, Cepsa will operate Block 127, including over 9675 square kilometres of the country’s Maranon basin, Reuters reported.
The contract is spread over a first phase of two years with an option to continue exploring the area for another four phases spread over five years.
"Cepsa Peru will repay to Loon certain costs already incurred and disproportionately fund the first and - if it remains a partner - second exploration period work commitment in order to earn an 80% working interest in Block 127," the companies said in a statement.
No monetary value was placed on the deal.
Cepsa already produces and exploration in Algeria, Egypt, Spain and Colombia.