The block is located in the Tumbes Basin, offshore Northwest Peru in water depths ranging from less than 100 meters to over 3,000 meters, covering an area of 4,875 square kilometres. Pitkin acquired Z-38 in March 2009 via its subsidiary Vietnam American Exploration (Vamex). In 2008, Karoon Gas Australia Ltd signed a Farmin Agreement with Vamex and gained an initial 20% equity interest. In October 2009, Karoon became the Operator and increased its equity interest to 75%.
Exploration activities completed to date include the acquisition, processing and interpretation of 2,393 kilometers of 2D seismic data, 2,350 kilometers of magnetic data, and 1,500 kilometers of 3D seismic data.
During July 2014, the Peruvian oil and gas regulator, Perupetro S. A., approved the application to place Peru Block Z-38 under Force Majeure. This was requested on the basis of the Operator, Karoon Gas, being unable to secure a suitable drilling unit within the required timeframe on the Pacific side of the Americas. The Force Majeure was granted effective 1 September 2013. As a result, the term of the current third exploration period will have approximately 22 months remaining once the Force Majeure is lifted.