As of 6 May 2019, Tullow Oil subsidiary Tullow Peru LTD has received approval for a 35% working interest farmin of the Karoon Gas Australia offshore block Z-38 located off the northern coast of Peru in the Tumbres Basin, known regionally to the north as the Progresso Basin. Karoon Energy advised on 6 May 2019 that the transfer to Tullow Oil of a 35% interest in the 4,875 sq km license will be made in return for the 43.75% funding of the cost of the first exploration well, capped at USD 27.5 million and beyond which the company will pay its 35% share. In addition, the farminee will pay USD 2 million and a share of block costs incurred on and after 9 January 2018 at completion, as well as a USD 7 million in the case of a commercial discovery. Karoon will retain a 40% operating interest in Block Z-38, with partner Pitkin Petroleum holding 25%. The acreage lies in 300 to 3,000 m water depths and contains several leads and prospects, including notably Marina, which is expected to be drilled early in 2020. The prospect has a gross unrisked oil resource potential of 256 MMbbl, with the rest of the block possibly holding over 1 Bbbl.  According to the company, the new acreage contains a number of attractive leads and prospects which include the Marina and Bonito prospect which together have the potential to hold close to 2-billion barrels of oil according to news reports. The Z-38 license is already covered by high quality 3D seismic and includes the Marina prospect which is a potential candidate for drilling in 2019.  The block had been in force-majeure from 2014 through late 2018 as Karoon was not able to secure a drilling rig, the Tullow deal may resolve the situation as the company is probably in a better position to acquire a rig giving the group 22 months to drill a required two wells.  Vietnam American Exploration Co LLC (Pitkin Petroleum) filed an application on the 4,885.06 sq km in January 2006 followed by the official award of the block on 8 June 2008. In January 2008 Karoon Gas Australia acquired a 20% working interest. Karoon Gas then acquired an additional 20% working interest in September 2009 bringing the working interest to Vietnam American Exploration 25% and Karoon Gas to 75%. Once the terms of the farm-out are met Tullow will then have 35%, Karoon Gas 40% and Vietnam American Exploration 25%.
Tullow Peru LTD has received approval for a 35% working interest farmin of the Karoon Gas Australia offshore block Z-38 located off the northern coast of Peru in the Tumbres Basin, known regionally to the north as the Progresso Basin. 