Australia's Global Oil & Gas (ASX:GLV) has signed a non-binding term sheet with US-based Jaguar Exploration over a proposed technical evaluation agreement (TEA) on a 4,345? block in the Tumbes and Talara basins, offshore Peru.

If the TEA application is successful, the pair plan to form a joint venture to hold the 80:20 Global:Jaguar stake.

In turn they plan to enter a licence contract to explore for hydrocarbons in the region "subject to fulfilling their commitments under the TEA".

Global Oil & Gas' share price hit $0.16 at 10:15am AEST.