Gold Oil - Is this Black Beauty ?

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The new contract referred to below should stimulate the share price when the contract is signed in Feb 2006.
SM

DJ Repsol YPF Signs New Hydrocarbons Contracts In Peru
16 December 2005 18:54:16



LIMA (Dow Jones)--Spanish-Argentine company Repsol YPF SA (REP.ES) increased its presence in Peru's hydrocarbons sector Friday, signing an exploration and production contract for block 109 in northern Peru and officially taking a 10% stake in Camisea's blocks 88 and 56.

"We are soon to be active in eight blocks in Peru, we have a balanced portfolio," said Repsol Exploration Peru's general manager, Gabriel Leret, on the sidelines of the signing ceremony.

The government also has approved a contract with Repsol YPF and U.S.-based Hunt Oil Co. for block 76.

Government officials expect that contract to be signed before the end of the year.

Leret didn't give an initial investment figure for block 109.

"This is a high risk zone, because no seismic has been done. First we have to study the field," he said.

According to state agency Perupetro, the contract includes a seven-year exploration period and a minimum investment of around $40 million.

If exploration is successful, overall investment in the field could reach as much as $500 million, according to Perupetro.

Peru has been trying to boost production in its flagging oil sector for several years, and its efforts are apparently paying off as new companies show interest and existing operators pump more money into exploration and development.

Peru has signed 15 new E&P contracts so far this year.

Moreover, according to Perupetro chief Antonio Cueto, four new contracts have been approved and will be signed in February

Of those, three contracts will be awarded to Amerada Hess Peru, a local subsidiary of U.S.'s Amerada Hess Corp. (AHC.US). The three are in central Peru.

The fourth will be awarded to a U.S.-based company called Gold Oil PLC (GOO.L), said Cueto.

On Friday the government and Repsol YPF also officially modified the contracts for Camisea's blocks 88 and 56 located in the southeastern Amazon jungle region to incorporate Repsol YPF as one of the partners in the consortium developing both blocks.

Other members include Pluspetrol Peru Corp. SA, Hunt Oil Co., South Korea's SK Corp. (SK.KO), Tecpetrol, a unit of the Techint Group (TCNT.YY), and Sonatrach Petroleum Corp. (SON.YY).

Repsol now holds a 10% stake in both contracts.

It also holds a 10% stake in the downstream phase and a 20% stake in Peru LNG, a group that exports liquefied natural gas to Mexico and other North American markets using gas from block 56.


-By Rebecca Howard, Dow Jones Newswires; 51-1-221-7050; peru@dowjones.com


(END) Dow Jones Newswires