Page 21 - LatAmOil Week 01 2021

LatAmOil NEWS IN BRIEF LatAmOil

COMPANIES

Bahamas Petroleum

Co. provides update on
court process, drilling of

Perseverance-1 well

Further to BPC’s announcements of Decem-
ber 29, 2020, December 30, 2020 and Decem-
ber 31, 2020, The Honourable Justice Petra
Hanna-Weekes has provided her ruling on
various matters (as referred to in those prior
announcements).
In summary, the Court’s ruling is as follows:
The Honourable Justice Petra Hanna-Weekes
has refused to grant any orders that would affect sales from the producing Santa Cruz Sur assets, Wells MDM-2025h and MDM-2027h were
BPC’s current operations. This means that the onshore Argentina. the first two wells of the Company in the Lower
drilling of Perseverance-1 will continue. The The Company is pleased to confirm that Carbonate landing zone of Vaca Muerta, con-
application from Environmentalists against the it has secured a further gas sales contract at a sisting of 2,186 metres of lateral length with 26
Government of The Bahamas to seek leave to premium to prevailing spot market rates. This completion stages, and 2,551 metres of lateral
bring judicial review proceedings in respect of new contract, for volumes which had previously length with 31 completion stages, respectively.
various decisions taken by the Government in been supplied to another party under a gas sales The Lower Carbonate is the third Vaca Muerta
relation to BPC’s licences in The Bahamas has contract expiring in early January 2021, is with landing zone drilled by Vista in Bajada del Palo
been granted; and a timetable for further hear- a key gas customer for four months until end Oeste, as the previous 12 wells, in pads #1 to #3,
ings has been established as follows. April 2021 pursuant to which the Company will had been landed in La Cocina and Orgánico.
A hearing to determine if BPC should be supply the customer with approximately 1.4 mcf After 70 days of production, the cumulative
formally added as a party to the action will be per day gross (1.0 mcf per day net to Echo) of production on a normalised basis of the MDM-
held on January 14, 2021. At this hearing, The natural gas. In the absence of the new contract 2025h and MDM-2027h wells was 27% and 32%
Honourable Justice Petra Hanna-Weekes will these volumes would have been sold to the spot above Vista’s type curve (consisting of 2,800
also provide further directions relating to the market. The gas price under the contract is a flat metres lateral length, 47 completion stages),
future hearings detailed below. A further hear- $2.00 per mmBtu representing a significant 28% respectively. Peak IP-30 was 1,224 bpd of crude
ing to determine the Government’s request for premium to the prevailing local spot price in the oil (1,390 boepd) for MDM-2025h and 1,537
security for costs against the applicants will be fourth quarter of 2020. bpd of crude oil (1,746 boepd) for MDM-2027h.
heard on January 22, 2021, and thereafter, a hear- The Company continues to sell gas under a The results of these two wells confirm the
ing in relation to the substantive judicial review combination for secured contracts of up to a year potential of the Lower Carbonate landing zone
will be held either in mid-February 2021, or dur- in duration and spot sales and the result of the of Vaca Muerta in Bajada del Palo Oeste as an
ing March 2021, depending on the availability of new contract is that approximately 60% of daily economical shale oil play. The petrophysical
the Court and the parties, with a ruling on the gas production from Santa Cruz Sur, under cur- analysis in Bajada del Palo Oeste shows that the
substantive application to follow at some point rent market conditions, continues be sold under Lower Carbonate has an average total organic
thereafter. secured contracts at significant premia to the content of 5.2%, an average total porosity of
Drilling of the Perseverance-1 exploration current spot price during Q1-2021. 12.7% and an average water saturation of 26%,
well in The Bahamas has been underway since The execution of this new contract is in line which are similar characteristics to those of the
December 20, 2020 (consistent with previous with the Company’s strategy to secure market Orgánico landing zone. According to our geo-
announcements prior to Christmas 2020). The leading pricing for its products in anticipation logical model, this could add up to 150 new wells
well remains on track to take 45-60 days from of increasing production pursuant to its future to our existing drilling inventory of 400 wells in
commencement to complete, at which time BPC work programmes. Bajada del Palo Oeste, for a total of up to 550
will be in a position to inform shareholders of the Echo Energy, January 06 2021 wells.
outcome of the well. In pad #4 we also landed two wells in La
Bahamas Petroleum Co., January 06 2021 Vista Oil and Gas reports Cocina. During the completion of pad #4 we
have not observed connectivity between the
Echo Energy announces two successful wells at Lower Carbonate and La Cocina. This fact sug-
gests the reservoirs of such landing zones are
update on commercial Bajada del Palo Oeste field isolated, which provides greater flexibility in the
development of Bajada del Palo Oeste.
operations in Argentina in Vaca Muerta formation 2026h and MDM-2028h, consisted of 2,177
The two wells landed in La Cocina, MDM-
Echo Energy, the Latin American focused Vista Oil & Gas has announced successful results metres of lateral length with 44 stages and
upstream oil and gas company, has provided a in wells MDM-2025h and MDM-2027h corre- 2,554 metres of lateral length with 51 stages,
commercial update regarding the Company’s gas sponding to pad #4 in Bajada del Palo Oeste. respectively.

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