Oracle Energy Corp. has entered into an agreement with Serpet Consult SA (Serpet) to acquire a 75% interest in an Evaluation Agreement to Promote (EAP) Area X111, located in the province of Maynas, Peru.
Area X111 comprises 500,000 hectares within Peru’s Maranon basin. A five year study on the Maranon basin was completed by Robertson Research International, now known as Fugro Robertson International Ltd, one of the world’s largest and most reputable upstream oil and gas consultancies. Robertson Research has calculated the volume of oil that was generated in the Maranon basin from its three main source rocks totals 137 billion barrels.
Commenting on the Robertson Study Nasim Tyab, President of Oracle Energy Corp. stated “when this number is compared to the discovered proven recoverable reserves in the Maranon basin of 761 million barrels oil it is apparent that an excellent opportunity exists for the discovery of additional oil in significant quantities.”
Oracle now holds a 30% working interest in the EAP having advanced Serpet US $125,000. The remaining 45% interest shall be earned upon payment of an additional US$125,000 at closing. which follows a period for additional due diligence and the negotiation and execution of a farm-in agreement and joint operating agreement (JOA).
The US $250,000 to be paid by Oracle to Serpet is allocated as follows:
A prospect fee of US$150,000 and US $100,000 for execution by Serpet of a data reprocessing work program. Upon satisfactory completion of the work program both parties intend to enter into a Technical Evaluation Agreement (TEA) or Exploration and Production Agreement (EPA) With Perupetro to pursue additional operations in Area X111.
Upon execution of a TEA or EAP Oracle shall be responsible for paying all costs attributable to Serpet’s working interest in the JOA to a maximum of US $2,500,000. Oracle shall be entitled to recover all costs and expenses incurred on behalf of Serpet out of 100% of production recovered from Area X111.
