Gold Oil Farms Out Interest in Block Z-34 Offshore Peru
Gold Oil, the AIM-listed oil and gas exploration and production company, has farmed out 80% of its interest in the block Z-34, offshore Peru, to Union Oil & Gas Group Corp (“Union Oil & Gas”). Gold Oil will be carried in the 3 remaining Exploration phases and keep a 20% interest.
Gold Oil will receive a total of $6 million for the Farm-out of which it will receive $4 million by selling Plectrum Petroleum Limited. Plectrum is 100% owned by Gold Oil and has a 50% participation in Block Z-34. Gold Oil will receive the remaining $2 million when Union Oil & Gas has been qualified by Perupetro for the additional 30% participation interest in Z-34.
Union Oil & Gas invests in oil & gas exploration and production in Latin America, with a focus on Colombia, Paraguay, Peru and Uruguay. It is a portfolio company of Union Group, a privately owned firm which holds significant strategic interests in businesses spanning the agriculture, energy, forestry, infrastructure, minerals, oil & gas and real estate sectors in Latin America.
Since inception in 2007, Union Group has focused on high growth Latin American economies characterised by under-developed natural resources and infrastructure sectors, a stable political environment and robust economic regulation.
Led by its founder and president, Juan Sartori, companies under Union Group’s umbrella have an estimated combined value of approximately $1 billion. In 2013, leading Canadian investment house, Dundee Corporation, acquired a minority stake in The Group.
Chief Executive Officer Rudolph Berends said, “I am pleased to be able to announce this agreement with Union Oil & Gas concerning our Block Z34 offshore northwest Peru”.