Union Oil and Gas Group acquires 77% of Block 100 in Peru

A consortium of investors led by Union Oil and Gas Group, a subsidiary of Union Group has acquired 77% of Peruvian onshore oil and gas Block 100 in the Ucayali Basin.

Block 100 covers 7700 hectares in the Peruvian jungle and was declared commercially viable by the Peruvian authority Perupetro in 2009. Three existing wells drilled on the northeast flank of the reservoir found 4 m of oil on water in 2009. A fourth 300 m deep well is due to be drilled during the next exploration phase.

Guzman Fernandez, CEO of UOGG, said: "Block 100 has excellent reserve potential. This transaction is a continuation of the expansion of UOGG’s oil and gas portfolio in Peru, which has grown substantially over the last 12 months as we take advantage of exceptional buying opportunities in the local market.”

In May 2015, UOGG acquired control of Hydrocarbon Exploration Peru Ltd, which operates onshore oil and gas Block 183 in the Marañon Basin in Northeast Peru.

The Group recently acquired a stake in Block 105 in the Titicaca Basin in Southern Peru, and also controls 80% of the Z34 offshore Talara block in the Northwest of the country.

In addition to its Peruvian assets, UOGG has stakes in six oil exploration blocks in Paraguay, a Uruguayan onshore block (Block B4), and Bolivia. The Group is currently applying for a license to operate in Belize.

Guzman Fernandez added: “In the short term, UOGG plans to continue acquiring significant productive and exploratory oil assets across Latin America, with a focus on new and underexplored basins”.

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/15012016/union-oil-and-gas-group-acquires-77-of-block-100-in-peru-2170/