Winchester Energy (ASX:WEL) and US-based geoscience firm Jaguar Exploration jointly applied to enter into technical evaluation agreements (TEAs) for two offshore exploration blocks in Peru's Lima and Pisco Basins, according to a Thursday filing with the Australian bourse.

Under the agreement, if TEAs for Block PI-XP-001 and Block Pisco Oeste are granted, Winchester and Jaguar will form joint ventures with an 80% and 20% initial stake, respectively, the filing said.

Winchester has paid Jaguar $12,500 and will pay $40,000 to cover TEA application costs; $270,000 in cash; and $300,000 in Winchester shares, subject to shareholder approval, the filing added.

If only one TEA is awarded, Winchester will pay $229,500 in cash and $255,000 in shares, the company said.

Jaguar also grants Winchester exclusivity until binding agreements are finalized, expected upon the receipt of the TEA grants.

The TEAs allow two years for geological and geophysical studies using existing data, the company expects to invest about $250,000 per block during this period, the company added.

After the evaluation period, the TEA will grant the parties the right to enter into a license contract for hydrocarbon exploration and exploitation.