Agreement with Peru Oil & Gas Exploration Limited

RNS Number : 4117L

Clontarf Energy PLC

12 August 2013

 

12 August 2013

Clontarf Energy plc

('Clontarf' or the 'Company')

Further to the announcement of 15 May 2013, the board of Clontarf (AIM: CLON) today announces that Rurelec PLC, an AIM listed energy provider in South America, has entered into an agreement with Peru Oil and Gas Exploration Ltd to purchase gas from Block 183 in Peru, when and if gas is produced.

Under the agreement with Peru Oil and Gas Exploration Ltd announced 15 May 2013, Clontarf holds a 3% overriding royalty on production from any commercial discovery. The royalty payment is capped at US$5 million per structure or US$10 million in total for the block.

The Rurelec PLC announcement reads:

Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, today 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 120 MW 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. However the location of Block 183, which is close to the important city of Tarapoto where there are currently power constraints, makes it an excellent site for new Peruvian thermal capacity to complement Rurelec's portfolio of hydroelectric plant being constructed by Rurelec's Cascade Hydro subsidiary.

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.

Commenting on the agreement, Peter Earl, CEO of Rurelec said:

"I am pleased that Rurelec has been selected for what will be our first greenfield thermal power project in Peru. This is yet another step towards building a diversified portfolio of power capacity to replace the power plants nationalised in Bolivia in 2010"

Enquiries:

Clontarf Energy Plc John Teeling, Chairman		[phone]
Blythe Weigh Communications Tim Blythe Halimah Hussain Eleanor Parry		[phone] [phone] [phone] [phone]
Nominated Adviser and Joint Broker                                      Shore Capital Pascal Keane/Toby Gibbs, Corporate Finance Jerry Keen, Corporate Broking		[phone]
Joint Broker Optiva Securities Ltd Jason Robertson Jeremy King		[phone] [phone]
Pembroke Communications Natalie Tennyson Alan Tyrrell		[phone] [phone]

www.clontarfenergy.com

 

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