Following the farm-out, Global Energy will retain a 40% interest in the contract through its wholly-owned subsidiary Harken del Peru.
Under the agreement, GTE will become the operator of the contract, subject to and following approval from the Peruvian authorities, and will assume 100% of the costs of an exploration well up to a maximum of $15m.
The company will also assume its share of the past costs incurred by Global Energy on the contract for $2m.
The contract is currently under force majeure until the final environmental sub-permits are received.
Global Energy anticipates receiving the remaining sub-permits in the first half of 2011 and the exploration well is expected to be drilled before the end of 2011.
The contract area is located in the Maranon Basin of north-eastern Peru and contains the Bretana-1 discovery well, which was drilled in 1974 and tested 18 degrees API gravity oil at natural flow rates of approximately 800 barrels of oil per day.
