New News....18 july Connacher Oil and Gas Limited (CLL - TSX), as guarantor and Petrolifera Petroleum Limited, through its wholly-owned subsidiary, Petrolifera Petroleum Del Peru S.A.C., confirmed today the signing of a License Contract with Perupetro for the exploration and exploitation of hydrocarbons on Block 106 in the Maranon Basin onshore northern Peru. The signing occurred at a ceremony in Lima, Peru on July 12, 2005, with Minister of Energy and Mines Sanchez and senior executives of Perupetro.
As previously advised, the License covers approximately two million acres and has a primary term of seven years with an agreed minimum work program of US $25.6 million, including the drilling of one well in each of year four and year seven. The License is held 100 percent by Petrolifera, the operator. Connacher retains a 10 percent carried working interest through the drilling of the first well in exchange for its guarantee. The carried working interest is exchangeable into a two percent gross overriding royalty in certain circumstances, and Petrolifera has a right of first purchase of Connacher's interest in the License.
Connacher is a public Canadian company listed on the Toronto Stock Exchange under the symbol CLL. Its principal asset is a 100 percent interest in 64,640 acres at its Great Divide project in the Alberta oil sands. Connacher also owns 40 percent of and provides management services to Petrolifera. Petrolifera is a private company with interests in the Neuquen Basin, Argentina and in Peru.
This press release contains forward-looking statements. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity and the risks and uncertainties associated with securing the necessary regulatory approvals and financing to proceed with the Great Divide project. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements.