Union Oil and Gas Group (UOGG), a subsidiary of Union Group, has acquired 80 % of Hydrocarbon Exploration Peru Ltd (HEPL), a UK company which owns 100% of Peruvian onshore oil and gas Block 183 in the Marañon Basin, Peru.
UOGG now has the principal role in all technical decisions regarding HEPL, a qualified exploration and production company that is recognised by the Peruvian authority Perupetro, and its asset Block 183.
The Block contains up to 2.2 trillion cubic feet (TCF) of whole recoverable potential gas reserves and a high probability of C5 condensates. It has two oil and gas prospects in anticlines associated with the Sarayaquillo sandstones (Chipurana and Alfaro) located in the Marañón Basin, which has produced oil and gas since the 1940s, close to the border of the Ucayali Basin.
The block covers 396,826 hectares, has good transport connections and is located next to two oil fields and one gas field in adjacent blocks.
Guzman Fernandez, CEO, Union Oil and Gas Group, stated:
"This acquisition forms part of our strategy to incorporate further high quality exploration assets in Latin America, capitalising on low prices and adding to our existing portfolio in Peru, Uruguay and Paraguay."
It counts among its investors some of the largest and most sophisticated institutions in North America, Europe and Asia, including Dundee Corporation, which owns a 40 per cent stake of Union Group.