Tullow has farmed into Karoon Gas' 35% of Block Z-38 in Peru. This reduces Karoon Gas' interest to 40% with Pitkin Petroleum being a 25% partner.
Tullow has acquired the 35% interest in return for:
Funding 43.75% of the cost of the first exploration well, capped at US$27.5m (for 100% cost of well) after which Tullow will pay its 35% share; and
US$2m payable upon completion with US$7million payable upon declaration of commercial discovery...
