Published:
EnDevCo Partners in Peru Exploration

EnDevCo, Inc. (OTCBB: ENDE), the Energy
Development Company, announced today its participation in the exploration
of Block XXIV in northern Peru. The Company is participating in the Block
at a 20% working interest with the current operator, Upland Oil & Gas, LLC.
The Block was the subject of a competitive bid conducted by Perupetro, S.A.
in 2006 and final contract terms have been under negotiation since that
time. Perupetro and Upland signed the official contract on July 23, 2007
in Lima, Peru.
Block XXIV is located on the coastal plain in northern Peru and encompasses
a total of 276,137 acres of which approximately 80,000 acres are located
offshore and 196,000 acres are located onshore. The Block is situated in
portions of both the Talara and Sechura basins in Northern Peru.
Significant oil and gas development is ongoing by other operators drilling
adjacent to Block XXIV. Olympic Peru, Inc. in Block XIII, approximately 15
kilometers north of the license boundary, has recently reported oil and gas
discoveries from Cretaceous sands at depths less than 5,000 feet deep. Ten
kilometers south of the license area, Olympic is currently re-entering and
completing existing wells in the Late Eocene Verdun formation and has
established natural gas production of an estimated 5 million cubic feet per
day from sands less than 2,000 feet deep. In Block Z2B approximately 20
kilometers southwest of the license area, Petrotech International Corp. has
announced an offshore discovery from the San Pedro #1X well reportedly
producing up to 4,000 barrels of oil per day from the highly fractured
Paleozoic Amotape formation.
Initial mapping of existing offshore seismic in Block XXIV has revealed at
least four prospects similar to the San Pedro discovery located in water
less than 200 feet deep. Preliminary internal estimates of reserves on
these offshore prospects range from a high case of 169 million barrels of
recoverable oil to a low (risked) case of 26 million barrels. The onshore
portions of the Block are unexplored with seismic data, but airborne
gravity reveals a significant undrilled basin in the interior of the Block.
The initial work program will acquire approximately 100 kilometers of 2D
seismic across identified anomalies to better determine the prospective
structures in the onshore portions of the Block.
"Peru represents one of the most favorable business climates in South
America for oil and gas development," said Richard G. Boyce, EnDevCo COO.
The base royalty on initial production is 8% up to a level of 5,000 barrels
per day and is a maximum of 15% on all oil and gas production there after.
The exploration contract allows for an initial 7 year exploration period
and a 30 year production period. Natural gas production infrastructure is
available near Block XXIV for the development of shallow gas prospects for
sale to the local market.
Mr. Pablo Breard, Vice President of International Research for Scotiabank,
recently said, "Peru's energy sector is an even better investment option
than its well known mining industry. The country's structural changes on
energy development will improve even further as more investments flow in."
The Scotiabank executive compared Peru's energy sector with Panama's real
estate market and the Bahamas' tourism industry, both extremely attractive
to investors.
"This is the type of project for which we envisioned that Joseph Lessard,
the Company's new CFO, would play a major role. He has a wealth of
experience in the South American energy market where he has been actively
involved for the last decade, including the successful negotiation of
several major energy transactions in Peru. He will play a key role in the
development of Block XXIV and complementary projects as EnDevCo moves
forward with this important asset for the Company and its shareholders,"
said Chris A. Dittmar, the Company's CEO.
This press release includes certain "forward-looking statements." The
forward-looking statements reflect the beliefs, expectations, objectives,
and goals of EnDevCo, Inc. management with respect to future events and
financial performance. They are based on assumptions and estimates, which
are believed reasonable at the time such statements are made. However,
actual results could differ materially from anticipated results. Important
factors that may impact actual results include, but are not limited to
commodity prices, political developments, legal decisions, market and
economic conditions, industry competition, the weather, changes in
financial markets and changing legislation and regulations. The
forward-looking statements contained in this report are intended to qualify
for the safe harbor provisions of Section 21E of the Securities and
Exchange Act of 1934, as amended.
EnDevCo, Inc. is a dynamic and growing energy company establishing an
identity consistent with its operating philosophy of "Science Before The
Drill Bit." EnDevCo maintains offices in Houston and Dallas, Texas. For
more information on EnDevCo, visit www.endevcoinc.com.
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