Irish Aim-listed oil and natural-gas explorer Pan Andean Resources has signed an exploration contract with the Peruvian government.
The agreement covers almost 500,000 hectares in the Ucayali basin in central Peru known as block 161.
The company said the area is adjacent to two producing fields, the Maquia field to the North and the Aguaytía field to the south.
Seismic analysis by Pan Andean of the region identified five prospective areas to target for oil and gas exploration, the company said.