Page 20 - LatAmOil Week 03 2021

LatAmOil NEWS IN BRIEF LatAmOil

SERVICES Karyna Rodriguez, VP Global New Ventures, located in the state of Espírito Santo. Potential
said, “Peru has significant estimated prospective buyers qualified for this phase will receive a
Searcher announces resources of more than 20bn boe. A consistent, process letter with detailed instructions on the
enhanced seismic and well database will provide divestment process, including guidelines for
multi-client campaign an essential tool to unlock some of this substan- due diligence and the submission of binding
proposals.
tial potential in the next phase of onshore explo-
onshore Peru ration as well as in the evaluation of the blocks The Cluster currently comprises four fields:
to be offered in the upcoming Bidding Round. Cancã, Fazenda Alegre, Fazenda São Rafael and
Searcher, a leading service provider of global Searcher is fully committed to supporting Fazenda Santa Luzia. The North Capixaba Ter-
geoscience products for exploration and produc- Peru’s onshore and offshore future exploration minal and all the production facilities contained
tion companies, has announced a new Onshore activities.” in the ring fence of the concessions are also part
Peru Campaign, in collaboration with PeruPetro Searcher’s Onshore Peru Data Library pro- of the Cluster, besides the ownership of some
2D and 3D Seismic Rectification and a Well vides an excellent regional framework across lands.
Atlas including post-drill analysis will provide the onshore basins including those with proven In 2020, the average production of the North
a renewed and enhanced dataset to support prolific oil prospectivity and those that remain Capixaba Cluster was 7,020 barrels of oil per day
future bid rounds, regional evaluations and due dramatically underexplored. The Onshore Peru and 60,400 cubic metres per day of gas. Petrobras
diligence of existing commercial opportunities. Data Library aims to address the unexplored is the operator of these fields and holds 100%
The Onshore Peru 2D & 3D Rectification potential through the rectification of the seismic stake.
consists of both 2D and 3D vintage seismic data and well datasets. Petrobras, January 15 2021
which has been rectified with Searcher’s pro- The Onshore Peru datasets complements
prietary post-stack reprocessing method. The Searcher’s Offshore Peru Data Library to now Edison Group: Canacol
post-stack reprocessing rectifies navigation, provide full country coverage both onshore
metadata, amplitude, phase and time to create and offshore. The Offshore Peru Data Library Energy ready to exploit
a contiguous database that can be easily loaded likewise consists of an Offshore Peru Well Atlas
into any interpretation software. The dataset is and Offshore Peru 2D and 3D Rectification Colombia’s gas market
comprised of approximately 104,500 km of 2D of approximately 49,000 km of 2D and 17,300
and over 7,000 square km of 3D rectified seismic square km of 3D. The complete Peru Data As we look across the E&P investment universe,
surveys. Library will be available on Searcher’s on-de- few companies potentially offer greater asym-
From an initial delivery of at least 400 explo- mand seismic web platform, sAIsmic. metric risk/reward upside compared with Can-
ration wells, a subset will be selected for the Searcher, January 14 2021 acol. The company is playing into a tightening
Onshore Peru Well Atlas. Searcher’s G&G team, Colombian gas market, which should continue
Discover Geoscience, will undertake a post-drill to support favourable pricing and longer-term
well analysis of key exploration/appraisal wells INVESTMENT growth plans. However, even with existing
across basins to complement the onshore seis- pipeline infrastructure and a conservative out-
mic database. The horizons will be remapped, Petrobras starts binding look on exploration and appraisal success, our
wells reanalysed, and detailed risk assessment 2P+ risked exploration base case valuation of
undertaken to create a modern well atlas. phase of North Capixaba CAD5.87 per share represents 59% upside to
The Onshore Peru Campaign comes in the current share price, while the downside is
anticipation of PeruPetro plans to announce an Cluster sale process protected through existing take-or-pay con-
Onshore Bidding Round during the first quarter tracts that suggest a low case based on 2021
of 2021. PeruPetro will launch a bidding process Petrobras, following up on the press release dis- take-or-pay contracted capacity (153 mcf per
for six blocks in the Talara Basin. The purpose closed on September 29, 2020, announces the day) of CAD3.50 per share. Under our current
is to find companies interested in improving the beginning of the binding phase regarding the assumptions, which include Canacol’s dividend
productivity of these mature fields with second- sale of the totality of its stakes in a set of four equivalent to a 5.7% yield, we anticipate planned
ary recovery and the implementation of new onshore field concessions, with integrated facil- capex and cash dividends to be covered by the
technologies. ities, jointly named North Capixaba Cluster, company’s existing cash and cash generation.
Our base case valuation stands at CAD5.87
per share and assumes the world will return
to normal in 2022, with gas sales resuming to
pre-COVID-19 levels. With fixed gas prices for
the medium term and 624 bcf 2P reserves, the
downside exposure to this valuation is limited to
exploration success and decreased gas demand.
In a scenario where exploration adds zero value,
core NAV stands at CAD3.62 per share.
Conversely, utilising existing infrastruc-
ture to the maximum suggests an unrisked
upside valuation of CAD7.78 per share, while
the expansion case currently being progressed
could increase the upside valuation to CAD9.17
per share.
Edison Group, January 14 2021

P20 www. NEWSBASE .com Week 03 21•January•2021