Repsol Makes ‘Significant’ Gas Discovery in Peru’s Block 57

Repsol SA (REP), Spain’s biggest energy company, found as much as 2 trillion cubic feet of natural gas in Peru’s block 57, pushing the company’s shares higher.

The “significant” discovery reinforces the potential of the region, where Repsol’s Kinteroni find was one of the world’s biggest in 2008, the company said today in a statement. Repsol advanced 7.3 percent to 15.82 euros in Madrid trading.

Petroleo Brasileiro SA (PETR4), with 46 percent of the block, said yesterday it was reviewing its investment in Peru as it focuses spending on Brazilian oil reserves. Tests showed the blocks may be capable of producing 11,000 barrels of oil equivalent a day, including about 2,000 barrels of condensate, a light crude oil produced in association with gas.

Block 57 is located in Peru’s Amazonian jungle, where Repsol and Petrobras are developing the Kinteroni gas field.

It’s expected to begin producing gas this year, Repsol reaffirmed today. In July, the company said Kinteroni had a gross production capacity of 5 million cubic meters.

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