Technical evaluation agreement for area XCII in the Madre de Dios basin will be for two years and will include only desk studies

Machine translation was used to publish the following Perupetro release

PERUPETRO reported that it has set up Area XCII in the Madre de Dios Basin, for the future signing of a Technical Evaluation Agreement (CET), for a period of two years, in order to carry out comprehensive geological-geophysical work and/or studies (desk studies) in said area.

The CETs include data reprocessing, satellite studies, geochemical analysis, among other non-intrusive methods, so the approval of environmental management instruments or permits is not required at this stage.

Area XCII is located between the departments of Puno, Madre de Dios and Cusco.

PERUPETRO indicated that during the last decade, gas and condensate reserves in Peru have continued to decline, falling by 60 percent between 2013 and 2022, due to the limited exploratory activity to incorporate gas reserves, which are estimated at 9.28 Trillion Cubic Feet, according to the MINEM's 2022 Annual Book of Hydrocarbon Resources.

Based on the assessment carried out, it is estimated that this volume would only be enough to cover the next 16.7 years. However, in the Madre de Dios basin, volumes of the order of 10.3 Trillion Cubic Feet of Gas are estimated in prospective resources.

These volumes demonstrate a hydrocarbon potential, the production of which would guarantee this resource for another 15 years. Therefore, it is necessary to promote the exploration and exploitation of our resources, with the aim of fostering sustainable economic growth, improving the quality of life of the population and guaranteeing the country's energy security.

During the last decade, gas and condensate reserves in Peru have continued to decline, falling by 60% between 2013 and 2022 (Chart No. 01) due to the low exploratory activity to incorporate gas reserves, which are estimated at 9.28 Trillion Cubic Feet, according to the MINEM's 2022 Annual Book of Hydrocarbon Resources. Based on the assessment carried out, it is estimated that this volume would only be enough to cover the next 16.7 years.

In this sense, there is a deposit, called Candamo, which was discovered by Mobil in 1999, with an estimated 3.6 Trillion Cubic Feet of contingent resources that was tested by the Candamo-76-1X exploratory well and which today rests under the shadow of the Bahuaja Sonene National Park, located in the district of Coasa, province of Carabaya, department of Puno.

PERUPETRO has carried out a technical reassessment of the Madre de Dios basin, which has allowed the configuration of Area XCII to sign a Technical Evaluation Agreement (CET), which is an agreement signed with PERUPETRO to carry out, for 2 years, comprehensive geological-geophysical work and/or studies (desk studies) in said area. The studies to be carried out within the framework of a CET do not require the management of environmental management instruments or permits.

It is estimated that the Madre de Dios basin has volumes of around 10.3 Trillion Cubic Feet of Gas in prospective resources. These volumes show a hydrocarbon potential, the production of which would guarantee this resource for 15 more years. Therefore, it is necessary to promote the exploration and exploitation of our resources, with the aim of promoting sustainable economic growth, improving the quality of life of the population and guaranteeing the country's energy security.

Chart No. 01. Gas reserves to decline by 60% between 2013 and 2022.