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Frontera Energy announces approval for resequencing of work programme in Guyana
Frontera Energy Corporation announces today that a resequencing of CGX Energy Inc.’s work programme in the Corentyne block, o shore Guyana, held by its wholly owned subsidiary, CGX Resources Inc., has been approved by means of an addendum to its Corentyne Petro- leum Agreement by the Government of the Co-operative Republic of Guyana. CGX and Frontera are joint venture partners in the block and CGX is the operator.
The benefit of the resequenced work pro- gram, which allows seismic assessment to be conducted over the northern area of the Coren- tyne block before drilling of an exploration well, is that it will allow CGX and Frontera to gain a more complete technical understanding of the Corentyne block and in particular its northern sector. Acquisition of new seismic data will allow the joint venture to evaluate more comprehen- sively the hydrocarbon potential of the Coren- tyne block updip from discoveries in the adjacent Stabroek block and help it assess whether it rst drills the Utakwaaka well or another well located in the northern region of the block.
Richard Herbert, Chief Executive O cer of Frontera, commented: “I am very pleased that our partner CGX successfully renegotiated the timing of our drilling and seismic obligations relating to the Corentyne block, o shore Guy- ana, allowing the joint venture to gain better technical data, including 3D seismic, before drilling. Our joint venture is now positioned to target higher quality, lower risk prospects,
beginning with our rst two wells planned for 2020.”
In addition, the joint venture plans to com- mence the drilling of a new commitment well in the Demerara block in 2020, which was origi- nally planned for February 2021. e sequence of the wells in 2020 will depend upon the results of the technical evaluation. This approach should also result in significant cost savings and improved execution e ciency for the joint venture.
Frontera Energy, August 02 2019
CruzSur Energy Commences
Exploration at SN-9 Block in
the Lower Magdalena Basin
CruzSur Energy, a growth-oriented oil and gas venture with significant assets in Latin America, has commenced a US$22mn phased development program at Sinu-9 (SN-9), a high-priority Colombian natural gas prospect, and is pleased to provide an update on other projects.
SN-9: is is an 18,000-acre (72.8-square km) project located in the Lower Magdalena basin, a proli c hydrocarbon producing region near the Caribbean coast. CruzSur holds a 72% interest in the SN-9 block, which is adjacent to Canacol Energy’s Esperanza block.
The company believes SN-9 could be an important new source of natural gas in Colom- bia at a time of market imbalance caused by steep decline rates at the country’s main pro- ducing elds, Chuchupa-Ballena and La Cre- ciente. Additionally, delays at the 2,500-MW Hidroltuango project are exacerbating demand for thermal energy generation, which is mainly produced with natural gas. LNG import prices in northern Colombia exceed $10/mmBTU. rough a phased approach, CruzSur expects to
grow reserves and provide a more stable supply of natural gas in the country.
Phase 1 will see the nalization of environ- mental and prior consulting processes, well seismic, the re-entry of Hechizo-1 well and two exploration wells.
Phase 2 will focus on evaluating the Magico and Milagroso areas, including acquiring 3-D seismic and drilling two additional exploration wells.
Experienced environmental impact spe- cialist Consultoría y Medio Ambiente has been engaged to obtain all necessary permits and licenses to commence exploration on the block. Community relations activities will be carried out by Aventtus, a rm with extensive consulta- tion experience with communities in the area.
Drilling rigs are expected on site in Q1 2021.
Maria Conchita: e Maria Conchita Block covers an area of 60,076 acres (243.1 square km) in the Department of La Guajira, Colombia and neighbours the Chuchupa-Ballena to its north, which in 2018 accounted for approximately 40% of Colombia’s daily gas output.
An evaluation programme is underway at Maria Conchita to de ne total resources and determine the most appropriate development plan for the Uitpa and Jimol formations. Possible re-entry in wells Aruchara-1, Tinka-1 and Istan- bul-1 could test several prospective zones based on new geological and seismic re-interpretation.
In accordance with the company’s environ- mental security policy, CruzSur has analyzed the actual status of other wells in the area that were abandoned by prior operators. e Com- pany has detected gas leaks in the Aruchara-1 well and, given the potential environmental risk, has requested authorisation of environmental authorities to re-enter the well and control the situation.
CruzSur holds an 80% participating interest in Maria Conchita, which it operates under its 100% owned subsidiary’s Colombian branch, MKMS Enerji Sucursal Colombia.
Sur del Rio Deseado Este (SRDE): Sur del Rio Deseado Este (SRDE) is a heavy oil eld located in the proli c San Jorge basin in eastern Patago- nia, Argentina.
CruzSur, through its operator Alianza Petrolera, with a 54.14% current interest in the exploitation area, is analysing all possible solu- tions to increase production and recoveries in this area, including new li ing methods through pulling works in several existing wells, as well as studying the possibility for new production stimulation methods and EOR possibilities from heat utilization to polymer injection.
e company believes that production and recovery factors can be increased in this area with the utilization of the right technologies, reaching values of at least 10%. CruzSur is in the process of designing and executing several tests
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