OIL NEWS FROM BELIZE, MID DECEMBER, 2011.

OIL NEWS FROM BELIZE

BNE Exploration License Awarded To Another Company
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Belize Natural Energy has the only commercial oil fields ever found in Belize currently under production, but that company has lost the right to continuing exploration in that bloc.

That area has now been licensed out to Perenco Limited, an Anglo - French -owned, Guatemalan-based company. Director of Geology Andre Cho told us that Cabinet made the decision a few months ago - and a new agreement will be signed in January of next year.

BNE's eight year exploration license for the 500 thousand acre contract area expired in January of this year. BNE felt that it had what one company rep called, a, quote "better than very good chance at at getting the bloc back." Well, how about no chance at all?

Cho told us four companies applied and government found PERENCO to be the most qualified with the most favorable terms. The decision has left BNE more than a little peeved, but it seems not too eager to start a fight with government. The company retains control over the two oil fields it currently has under production in Spanish Lookout and Never Delay. Because oil was discovered in commercial quantities there, BNE will retain control of those fields for 25 years after the commercial declaration was made.

Cho explained that Perenco - which is a multinational oil and gas company - was scored based on technical expertise, financial qualification fiscal terms the work programme that it is proposing.

It's a bitter end to exploration for BNE which has been the only company to find oil in Belize after 50 wells were dug over 50 years and turned up nothing.

But, detractors argue that while it did find commercial quantities in two locations, it has also had no luck in making similar findings in many more structures explored in the same bloc.
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