Pan Andean Resources announces that CEPSA of Spain and Perupetrol have finalised the legal agreement whereby CEPSA becomes the operator of Blocks 114 and 131 in the Ucayali area of Peru. A Supreme Decree has been issued authorising the transaction.
Under the terms of the agreement, Pan Andean maintains a 30 per cent carried interest in each block with all expenditure funded by CEPSA, up to and including 100 per cent of the first exploration well on each block and 50 per cent of a second well on each block.
CEPSA have paid Pan Andean back costs incurred on the blocks totalling $3 million to date on both blocks.
