1. CONTRACTUAL REASONS

1.1 Contract Model
Simplifies the negotiation and makes that the agreements of the contract be achieved in short periods.

1.2 Flexible Works Programs
Relaxation of the Minimum Program of Exploratory Work, they can be set in Exploratory Work Units (EWU), whereby the Contractor is free to establish works that allow the compliance of the agreed number of EWUS for each period.

1.3 Technical Information available Free Of Charge

PERUPETRO S. A. has established as a policy of transfer of technical information at no cost to the Investor or Contractor, must pay only the amount for media transfer (disks, paper, etc..) and the corresponding shipment.

1.4 Refund of General Sales Tax during the Exploration Phase

During the exploration phase of the Contracts and execution of technical evaluation Agreements, the Companies that underwrote the Contracts or Agreements referred to in Articles 6º and 10º of Law 26221, Organic Law of Hydrocarbons, shall be entitled to the final repayment of the General Sales Tax and Municipal Promotion Tax that pay for the execution of activities directly related to exploration.

This right is part of the tax regime subject to the tax stability guarantees in the Contracts or Agreements with companies that subscribe with Perupetro S.A. from the force of Law No. 27624, Law providing for the Return of General Sales Tax and Municipal Promotion Tax for the Exploration of Hydrocarbons.

2. GEOLOGICAL REASONS
 

Historically, our Basins, (Onshore and Offshore - See map), have been VERY LITTLE EXPLORED, consequently, there is little seismic and well information. In the last 30 years the following information has been registered in the Perupetro Data Bank:

2.1 Onshore Basin

2.1.1 Marañon: 129 exploratory wells, with more than 60,000 Km of 2D seismic lines and 2,300 Km2 of 3D seismic in digital format. Basin, under-explored by Paleozoic Targets (Deep). Proved existence of heavy oil structures in the north-eastern part of the basin and light oil at the north western region of the basin.

2.1.2 Ucayali: 79 exploratory wells, more than 30,000 Km of 2D seismic and 2500 Km2 of 3D seismic in digital format. Basin under-explored in its central and northern part by Paleozoic Targets (Deep), Camisea Fields -Gas and condensates- in the southern area of the basin.

2.1.3 Santiago: 08 exploratory wells and more than 2,000 Km of 2D seismic lines in digital format. Abundant crude samples at surface. This basin contains an active oil system. Exploration is lacking.

2.1.4 Huallaga: 01 exploratory well and more than 2,000 km of 2D seismic lines in digital format. Crude oil samples on surface. Exploration is pending.

2.1.5 Madre de Dios: 07 Exploratory wells and more than 11,000 km of 2D seismic lines in digital format. Gas basin (Candamo Deposits) underexplored.

2.1.6 Titicaca: 10 exploratory wells and more than 500 km of 2D seismic lines in digital format. This basin produced 300,000 Bbls of light oil in a very old field (Pirin). This basin is still underexplored.

2.1.7 Ene: 01 exploratory well and more than 400 km of 2D seismic lines in digital format. 

2.1.8 Bagua: Unexplored basin, but with a very high prospective potential.

2.2 Offshore Basins

2.2.1 Trujillo and Salaverry: 4 exploratory wells and more than 20,000 Km of 2D seismic lines and 9000 Km2 of 3D seismic in digital format. Outcrops in marine surface, which demonstrate the existence of an active petroleum system. There are several types of stratigraphic traps to be explored.

2.2.2 Talara and Tumbes Basins: Extensive seismic information and abundant number of wells. Over-explored basin. Currently has 1,636 exploratory wells and more than 30,000 km of 2D seismic lines and 8,400 km2 of 3D seismic in digital format.

3. OTHER ASPECTS OF INTEREST

3.1 There are many exploratory wells (drilled during the 1970 and 1980), with traces of hydrocarbons left behind by technological limitations. There are also unsuccessful Drilled Wells by wrong location. (Mainly in the Marañon Basin).

3.2 There are structures in which hydrocarbon accumulations were discovered that were left uncompleted by the time prices - about 9 U.S. $ per barrel-.

3.3 The Technical Information, contained in the Data Bank is available to all oil Companies interested in investing in Hydrocarbon Exploration and Exploitation Activities.

3.4 New technologies for hydrocarbon exploration and exploitation, open new possibilities for re-evaluation of structures already drilled.