Block 95, the company’s only Peruvian asset, located in the Maranon Basin in the north-east area of the Colombia, is found to have 8.4m barrels of oil as net 2P reserves.
The contract is in Global’s third exploration phase but is now under force majeure, pending approval of certain environmental licensing requirements.
Global Energy Development managing director Stephen Voss said prolonged force majeure status of the Block 95 Contract and rising anticipated exploratory well costs led to the decision to sell the company’s remaining working interest.
"This sale allows the Company to remain focused on our core value contract areas in the Middle Magdalena Valley and Llanos Basin in Colombia, South America," he added.
As per the deal executed through Global Energy’s subsidiary, GTE will pay $5.4m in cash with $2m payable upon closing and the remaining $3.4m after the approval of the assignment from Perupetro, Peru’s national agency of hydrocarbons, or one year from the closing date.
The sale proceeds will be used for general working capital purposes.
